Crain's Cleveland Business

VOL. 37, NO. 49

DECEMBER 5 - 11, 2016

Source Lunch

On the money?

Local bankers believe Trump presidency will spark growth. Page 6

Jennifer Kramer talks about a hectic year for local tourism. Page 32 DEVELOPMENT

Team NEO is trying to bolster listing info

CLEVELAND BUSINESS

The List The region’s largest office leases. Page 35

HEALTH CARE

By JAY MILLER jmiller@crain.com @millerjh

To put the region and the state in the running for more manufacturing expansions, Team Northeast Ohio, the business attraction and retention group that serves an 18-county region, and JobsOhio, the state’s business attraction nonprofit, are developing plans to get a better handle on the inventory of available buildings and vacant land that would be attractive to companies looking to establish new operations.

Team NEO hopes to get all of the operators of property databases in the region’s cities and counties to improve the accuracy and depth of information available for each site. It then wants to put each database onto compatible software so they can be consolidated into a single site that national site selectors can use.

That data, in turn, will be fed into the site database of JobsOhio, once new data software is up and running.

These moves are precipitated by a shrinking inventory of available properties and the realization that what information is available often is not sufficient to meet the needs of site selectors. The information typically is on websites scattered across the region and the state, making it more difficult for site selectors to find.

“There is a regionwide push to get better data on sites,” said Jacob Duritsky, Team NEO’s vice president for strategy and research. “Of all the listings we researched, only 43% of the sites have adequate information. For the rest, there’s not enough information.”

The site selection consultants hired by businesses looking for a new location often start their searches with the online site inventories in the databases of cities, states and regional economic development organizations.

SEE TEAM NEO, PAGE 30

Metro’s bold plan sparks confidence MetroHealth is moving forward with an $855 million campus transformation. (Contributed rendering)

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

MetroHealth is bucking national trends as other public and safety net hospitals struggle to break even and many are losing money.

But 2015 was the system’s eighth consecutive year operating in the black,

which is “extraordinary,” said Bruce Siegel, president and CEO of America’s Essential Hospitals, the national trade association for safety net hospitals.

This streak, along with the system’s recent growth, helped to position MetroHealth to be able to move forward with its much-discussed campus transformation plan and replace its familiar, but aging, patient towers with a new hospital.

“It is one of the best-performing public hospitals in America,” Siegel said. “I don’t know any other who’s had eight continuous years of being in the black.”

On Tuesday, Nov. 29, MetroHealth announced an aggressive four-month timeline to secure financing for the project, which totals $855 million for design, construction and equipment.

Officials expect the campus trans-

formation to help continue and accelerate development in the neighborhood.

The construction and summer opening of the Critical Care Pavilion, the first phase of the transformation, has already helped with that, said Jeff Ramsey, executive director of the Detroit Shoreway Community Development Organization.

SEE METRO, PAGE 34

SPORTS BUSINESS

Season-ticket clubs are all-year gatherings

By KEVIN KLEPS

15,000

7,700

kkleps@crain.com @KevinKleps

Number of Cavaliers 2016-17 full-season-ticket equivalents.

Number of Wine & Gold United members.

“All the Way Up,” a popular rap song by Fat Joe and Remy Ma, blared as the Cleveland Cavaliers unveiled two banners — one celebrating the franchise’s first championship and the other displaying the name of every season-ticket holder — during an event Oct. 16 at the

Huntington Convention Center of Cleveland.

There were 3,000 Wine & Gold United members at the event — a record for the annual gathering of the membership program the Cavs started in 2013.

The fans on hand got the first look

at the championship banner, which would be raised to the Quicken Loans Arena rafters during the Cavs’ season opener nine days later.

In the Cavs’ case, membership really does have its privileges. Gone are references to season-ticket holders.

Instead, it’s a club that just so hap-

Entire contents © 2016 by Crain Communications Inc.

pens to include seats on game day.

“We don’t have season tickets,” said Dionna Widder, the Cavs’ vice president of ticket sales and service.

“If you have a membership, your tickets are included. Wine & Gold United is the platform for our season-ticket base. You get all the access.”

What the Cavs have done — turning season tickets into a year-round membership model — is becoming the norm in professional sports.

SEE CLUBS, PAGE 30

Focus Who to watch in education Pages 15-22

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MacroPoint charting path to big success

By RACHEL ABBEY McCAFFERTY

“We’re a high-tech Rust Belt company, if you will.”

rmccafferty@crain.com @ramccafferty

People might not think of trucking as a technology business, but MacroPoint LLC in Independence aims to change that.

And it just raised $44 million to accomplish that task.

CEO Bennett Adelson describes the company’s offerings in relation to other modern businesses, pointing to the “Amazon effect” of people wanting their goods shipped faster as a driver of growth and comparing the ability to track freight movement to the way consumers can track their Uber vehicle’s arrival.

The company, which started in the summer of 2011, uses software to help customers follow the shipment of their freight in an often fragmented trucking market. The program can aggregate the information used by different drivers, instead of requiring them to adopt a common system.

This gives the customers “full visibility” of their freight, information they can then share with their customers, Adelson said.

“They all want to see where their freight is,” he said.

The idea came from customers of Bennett Adelson Consulting Inc., who identified this need as a pain point, Adelson said.

MacroPoint has grown rapidly in its first years. Adelson said the company is closing in on $20 million in annual revenue this year, and that it’s grown about 100% each year, all funded on “sweat equity and dollars out of our own pockets.” But last month, the company received its first private equity investment of $44 million from Susquehanna Growth Equity LLC. Susquehanna Growth Equity sees “visibility” as a broad trend, said

— Bennett Adelson, MacroPoint CEO

MacroPoint’s technology allows customers to track their freight, even when they use third parties.

(Contributed photos)

MacroPoint CEO Bennett Adelson says “all” of the company’s customers want to know the current location of their freight.

director Ben Weinberg. The equity investor focuses on high-growth opportunities in technology businesses; Weinberg leads the supply chain investments. He said he sees a “huge addressable market” in MacroPoint because of the fragmentation in trucking. It can be difficult for companies to know where their freight is, especially if they’re working with third parties.

MacroPoint’s product was a “huge benefit” to early adopter Panther Premium Logistics Inc. in Medina, said Lou Schneeberger, who had been the company’s president and CEO before stepping down in November. The logistics company does a lot of expedited deliveries for time-sensitive materials, which means it communicates with its customers throughout the process. Be-

ing able to see exactly where a shipment was at all times was a “huge step forward,” Schneeberger said. It meant the company could comfortably use agents in addition to its own fleet for more projects.

That’s because MacroPoint’s patented technology works with a company’s existing technology. And if a truck has no tracking technology, MacroPoint can track it using its cell phone technology, Adelson said.

Weinberg said this is Susquehanna’s first investment in MacroPoint.

The investment means the firm is now a partial owner in MacroPoint, along with Adelson and Dan Cicerchi, the company’s chief operating officer.

The firm wants to see MacroPoint continue to satisfy the demands of its customers, Weinberg said, as well as broadeniwng their functionality to serve more. A news release on the investment noted that the company already has more than 3,000 customers, including UPS and FedEx, and tracks more than 2 million loads each year.

Adelson said the majority of the investment will go toward hiring, especially in marketing and technology development. The company also has a lot of senior sales positions open.

Currently, MacroPoint has 44 open positions, Adelson said, and 35 employees. He’s looking for some new office space in the next few months, though he plans to stay close. He wants to inject some of that hightech energy, but likes the hard workers in Cleveland.

“We’re a high-tech Rust Belt company, if you will,” Adelson said.

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MVP Reit Inc. has purchased the Lincoln Building at 708 St. Clair Avenue for $7.3 million. (Stan Bullard)

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MVP Reit Inc., a San Diego-based public company that invests in automobile parking properties, is the new owner of the Lincoln Building in downtown Cleveland after paying $7.3 million for it to a local investor group.

Lincoln is a seven-story building at 708 St. Clair Avenue that was built in 1917. The building is best known as the former home of the long-closed Pat Joyce’s Tavern downtown, a popular restaurant and bar in the 1970s.

The structure incorporates about 500 parking spaces as well as retail space on its first floor and a floor of empty offices on its top floor, according to a Nov. 18 filing by MVP with the U.S. Securities and Exchange Commission. The same filing includes the purchase price.

sbullard@crain.com @CrainRltywriter

Northeast Ohio has lost one independent commercial and residential real estate brokerage name in a merger as it gained another commercial startup brokerage.

Rocky River-based Bass Ohio Real Estate has merged with Coldwell Banker Schmidt Cos. of Traverse, Mich., Bass CEO and founder Tom Jelepis announced in an email on Nov. 18.

Terms for the merger were not disclosed, but the deal adds 30 residential and commercial agents to the

LEARN MORE J www.armadarisk.us/3yearPlan? or contact Ed Purcell, 216 350 5052 CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: 216-522-1383; www.crainscleveland.com Reprints: Krista Bora; 212-210-0750; kbora@crain.com

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to the media. Two messages for Michael Schustek, MVP chairman and CEO, to discuss the firm’s plans for the Lincoln were not returned.

The Lincoln Building is MVP’s second investment this year in Cleveland. In May, it paid $5.7 million for a 260-space parking lot at 1200 West Ninth Street in the city’s Warehouse District.

At the southeast corner of St. Clair and East Sixth Street, the Lincoln Building benefits from multiple real estate investments that breathed fresh life into the vicinity the past couple years. Its neighbors are the new Westin and Drury Plaza hotels, Cleveland Public Hall and the adjoining Huntington Convention Center of Cleveland.

The IMG Building also has benefited from recent downtown Cleveland developments. Breen has landed multiple office tenants displaced by the conversion of other, older Cleveland office buildings to apartments.

Coldwell merges with local firm

By STAN BULLARD

What’s your Broker’s 3-Year plan for your health insurance program?

Cuyahoga County land records do not disclose the price paid for the building because MVP acquired the company that owns and operates the real estate rather than the property itself.

The seller was Manchester Realty, an investor group led by James Breen that paid $2.8 million for the mixeduse building in 2002, according to Cuyahoga County land records.

Breen said in a phone interview that he would check with the buyer about what he could say about the transaction, but he did not return subsequent calls about it by Crain’s deadline last Friday, Dec. 2.

However, Breen confirmed his investor group continues to own the adjoining 16-story IMG Building at 1360 East Ninth Street. The Lincoln Building provides parking for tenants of IMG and the surrounding area.

A telephone receptionist at MVP Reit told Crain’s that the company does not comment on its operations

Customer service and subscriptions: 877-824-9373

Coldwell Banker roster.

Jelepis, a 30-year veteran of commercial brokerage and former mayor of Bay Village, has been named director of commercial real estate for Coldwell Banker Schmidt.

Former Bass senior vice president David Matthews has been named the manager of Coldwell Banker’s Westlake office. Jelepis said Bass’ Rocky River office has closed.

Coldwell Banker Schmidt entered the Northeast Ohio market in 2015 by acquiring Coldwell Banker Hunter, which had 16 offices and 300 agents in Northeast Ohio.

Meanwhile, SVN | Summit Commercial Real Estate Group has opened a three-agent, full-service

commercial real estate brokerage in Akron. The franchise of Boston-based SVN International Corp. is led by Jerry Fiume, a 30-year veteran of commercial real estate.

Fiume has served as an account executive at Akron-based NAI Cummins for the past seven years. He previously was a founding partner of Medina-based Pride One Real Estate, a homebuilding concern that has evolved to a residential and commercial construction company.

Fiume said the new office, which he heads as managing director, will serve Medina, Portage, Stark and Summit counties.

SVN International was previously known as Sperry Van Ness.

Volume 37, Number 49 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2016 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00.

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Ann McCarthy-Garland’s age was listed incorrectly in the Nov. 21 Forty Under 40 edition. She is 39. Her role with Ohio City Inc. also was misstated.

She is an outside volunteer on a committee at the organization, not a member of the board. Also, Jessica Jung’s photo was accidentally excluded from the class composite on Page 13.

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A new presidential administration means bankers longing for regulatory relief these past few years may see their wish granted.

Under a Donald Trump presidency, banks could see a friendlier climate epitomized by fewer restrictions on how they do business, namely through a repeal or rollback of the Dodd-Frank Act — something Trump espoused adamantly during his campaign that the industry is expecting to see happen.

The potential for removal of regulations that bankers view as shackles squeezing their margins, combined with the benefits of other policy changes like a corporate tax cut, could bolster the industry’s growth.

While it’s too early to gauge exactly how the industry may benefit, bankers like Kevin Helmick, president and CEO of Farmers National Bank, a $1.8 billion-asset community bank based in Canfield, are looking at 2017 and beyond with more optimism than they’ve felt in years because of the president-elect’s promise to embolden financial services.

“You may not see regulatory and compliance costs piling up as they have the past five or six years,” Helmick said. “It’s not going to be a windfall. But a reduction of those headwinds … that’s exciting for us.”

That feeling seems to be shared unanimously throughout the industry.

Members of the Ohio Bankers League trade association are “cautiously optimistic” about the future of banking under a Trump presidency, said spokesman James Thurston.

“However this breaks down, you’re going to have a more favorable business climate and a more favorable banking climate than our current administration,” Thurston said. “The question is: How much more favorable (will it be)?”

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The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed in 2010 following the financial downturn that struck two years prior. With an impetus that deregulation of banks contributed to the last economic crisis, the law set new regulations into motion intended to, among other things, end toobig-to-fail banks and establish new levels of oversight that would keep another downturn from happening.

While the law was created with the country’s largest banks in mind, its effects have had a deep impact at community banks that don’t have the same depth of resources to pay for the hard costs of heightened regulations — namely, the hiring of new compliance officers — as effortlessly as their larger counterparts.

First Federal Lakewood, for example, a mutual bank with $1.6 billion in assets, has added at least a dozen positions in risk, audit and compliance alone in the wake of DoddFrank, said president and CEO Tom Fraser.

Those levels go up exponentially for the largest banks. But those institutions also have deeper pockets to absorb the cost.

A Trump administration could lighten the regulatory burden. But that doesn’t necessarily mean the compliance officers the banks have been adding won’t be needed any longer.

At this time, both Fraser and Helmick said they don’t intend to decrease their workforce of compliance personnel, even if some regulatory relief comes as soon as next year. After all, the costs of those positions have been absorbed into their current budgets.

“Our bank has already absorbed the compliance costs related to Dodd-Frank, so I don't necessarily anticipate any cost savings,” Fraser said. “We've built our 2017 business plan on the positive growth trends happening in Cleveland and the opportunity to spend our time focused on our customers.”

What’s empowering, Helmick said, is the notion that new regulations

“However this breaks down, you’re going to have a more favorable business climate and a more favorable banking climate than our current administration.

The question is: How much more favorable (will it be)?”

— James Thurston, Ohio Bankers League spokesman

won’t arise under a Trump administration, removing some of the uncertainty felt in the industry during the past several years.

“Just the fact those types of new regulations won’t keep coming is encouraging,” Helmick said.

Regulations like Dodd-Frank's qualified mortgage rule that are designed to prevent the kind of lending practices that sparked the last recession.

While establishing more protection for borrowers, that rule is an example of those that bankers say choke margins by restricting access to credit and generally slowing down lending productivity.

That stymies a traditional bank revenue stream as a result, driving industry consolidation — mostly through smaller banks closing or merging — and discouraging new banks from starting up (only seven new banks have been chartered since the last recession).

That impact has been quite real, particularly for smaller institutions and community banks.

Nationwide, there are at least 1,500 fewer banks at or below $1 billion in assets today compared with 2010.

Add in credit unions, and that amounts to about one financial institution closing a day.

In Ohio alone, bank charters have dropped 16% in roughly the past six years, from 236 in 2011 to 198 today.

Thurston said the qualified mortgage rule is a main reason for that decline. And it's something a Trump administration could erase in its targeting of Dodd-Frank, opening up credit to more borrowers and bolstering profitability.

Notably, despite the pains and

challenges of complying with all these regulations, banks as a whole have done pretty well.

According to the Federal Deposit Insurance Corp., net income of FDIC-insured institutions hit $45.6 billion in 2016’s third quarter, nearly a 13% increase from a year ago. Community bank revenue, meanwhile, grew nearly 12% in the same timeframe, with net revenue and loan growth actually outpacing the overall industry.

Thurston attributes that success to bank leaders simply figuring out how to do business in the current climate.

While many have looked to new sources of revenue to keep growing margins — Farmers, for instance, has focused on growing its wealth management business in recent years and broke into insurance back in 2011 to diversify its income — that industry-wide loan growth shows that bankers, in general, have adjusted to today’s landscape.

But if so many stringent regulations weren’t forced on the industry, that growth would likely be even stronger, and smaller banks wouldn’t be subject to the struggles that have forced some out of the industry.

Couple lighter regulations with the likelihood of a corporate tax cut Trump has campaigned on, which would have an immediate impact on profitability, and banks stand to see revenues pick up much faster.

That expectation is a main driver behind the NASDAQ bank index soaring over 20% in the past month, said Ben Mackovak, a managing member at Strategic Value Bank Partners LLC, a bank investment fund based in Beachwood.

“That’s a really dramatic move,” he said, showing investors are quite bullish about the banking space for the foreseeable future.

Lawmakers haven’t wasted time.

On Nov. 22, the House introduced H.R. 6392, a bill that would change the way banks are designated as Systemically Important Financial Institutions (SIFI). Currently, any bank at $50 billion in assets is considered a SIFI, bringing its own host of regulations. H.R. 6392 would base a SIFI designation, which current opponents believe is arbitrary, off a review of an institution’s lending exposures instead of their asset size, which would mostly benefit large banks.

There are some caveats to all the positivity.

Fraser said he doesn’t expect any immediate changes to the regulatory landscape. After all, it’ll take some time for laws to be changed — months at least.

Considering the balance in the Senate, any policy changes will still require some degree of bipartisan support, meaning Republicans will have to get some Democrats on board. (As a ranking member of the Senate Committee on Banking, Housing and Urban Affairs, U.S. Sen. Sherrod Brown, D-Cleveland, could be a pivotal player in all that).

All the optimistic expectations for the banking sector also come with hope that the rest of the economy will cooperate.

“Even with lower regulatory costs, if the economy turns down and credit quality falls apart, the banks aren’t going to do well,” Mackovak said. “All these things are being taken with the assumption the economy will remain stable.”

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Keeping it cool is key for Massillon firm EMSCO expects hybrid cooling system to account for 25% of its 2017 business

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

Massillon-based EMSCO Inc.’s core business is based in heat: namely, in manufacturing and re-manufacturing related to induction furnaces for steel mills and foundries.

But the flip side of that business is in cooling systems. After all, something has to cool the furnace down so it doesn’t melt along with the metal it’s heating. And in recent years, this has become an increasingly important part of the company’s portfolio as it explored new types of cooling technology and expanded the markets it serves.

For years, EMSCO offered cooling systems made by suppliers, said president and CEO Jim Dyer. In the United States, the traditional method for this kind of cooling is evaporative cooling towers, which use evaporating water to reduce temperatures, Dyer said.

But around 2010, EMSCO learned about a different type of cooling system that was catching on in Europe.

For technical purposes, it’s called an adiabatic system, which means no additional energy is introduced during the process. For practical purposes, that means these systems mainly rely on air instead of water for cooling. EMSCO began importing these systems from a British company and selling them into the metal melting industry it served.

Dyer said the company saw a “fair amount� of success with this approach, but decided it needed a bigger audience in the United States. It began targeting other industrial markets, including distilleries and plastic

injection molding companies, as well as large institutions like hotels and schools that use systems like this with their air conditioning.

In 2013, EMSCO decided it wanted to begin manufacturing its own products in the U.S. Most of the U.S. business was for replacement products, Dyer said. “When someone needed new equipment, they needed it in a hurry,� he said.

After trying and failing to get a license from the foreign company, it designed its own product. The company began manufacturing of its cooling systems in 2014. Today, the company makes those products at its Alabama location. EMSCO, which has about 100 employees and is part of the Inductotherm Group, also has plants in Ohio, New Jersey and California. Engineering is done at the company’s headquarters in Massillon. Dyer declined to disclose annual sales for EMSCO. So why is it important that EMSCO’s systems primarily use air, instead of water?

Traditional evaporative systems run coils of hot water from furnaces or air conditioning systems through a tank filled with water. The water in that tank is pumped to the top of a tower, where it evaporates, and is reused. That process clearly uses a lot of water, but that stagnant water also can serve as a breeding ground for Legionella bacteria, Dyer said, causing a health hazard when it evaporates and escapes into the air.

Earlier this year, there was a Legionnaires’ disease outbreak in Lake County, and, though it’s difficult to confirm what caused the outbreak, a release from the Lake County General Health District found signs of the

bacteria in a cooling tower at an industrial location.

On the opposite end of the spectrum are systems that only use air to cool the water in the coils. The problem, Dyer said, is that if the air is too warm to cool the water, the system has to be shut down.

The system EMSCO offers is a hybrid of both. It uses plain old air to cool the water in the coils, but if the air is too warm to cool the water in the coils on its own, the system releases a mist right in front of the coils to help cool it down. The water is fresh, not recirculated, and is used only when needed. “It isn’t around long enough for the bacteria to have an opportunity to grow in it,� Dyer said.

The factors Dyer sees as driving interest for EMSCO’s hybrid cooling systems aren’t exactly pleasant ones.

The Legionnaires’ component is significant — the Centers for Disease Control and Prevention points to water systems like cooling towers, decorative fountains and hot tubs as common places where the bacteria can grow. Another is the ongoing water shortage in the West. The company has targeted that region, hiring

agents to represent its products in states like Nevada, Arizona and California. “The water crisis kind of demands solutions that are other than what the conventional wisdom in the U.S. has provided,� Dyer said.

Corey Jenkins, corporate marketing manager, said since the system is still an emerging technology in the United States, it’s about selling a “behavior change,� not a piece of equipment. Dyer agreed, saying it’s about selling the idea behind it.

One of the company’s customers, Manitowoc Grey Iron Foundry in Wisconsin, began working with EMSCO in the early 2000s and bought one of the company’s HyprCool systems in recent years as a replacement for an old evaporative cooling tower. The old system was labor intensive, the chemicals to keep it clean were expensive, and it used a lot of water, said president Rob Peaslee. The HyprCool also offers energy savings in the colder months, and when it’s warm out, the energy usage is comparable to the old system, Peaslee said.

It’s clear that the addition of the hybrid cooling systems is changing EMSCO. This year, the hybrid cooling

systems will make up about 18% of the company’s total business, Dyer said, and he expects that to grow to 25% next year. The manufacturing of the systems is so different from the company’s original business in building and rebuilding induction melting furnaces that EMSCO has started to separate the management teams, Dyer said.

EMSCO currently makes two lines of hybrid cooling systems: the HyprCool Hybrid Process Cooling Systems for industrial customers and the Virga III by Nimbus Advanced Process Cooling for customers like schools and hotels. They’re sold slightly differently, Dyer said. The Virga marketing is done by manufacturing representatives and focuses on the health and water conservation benefits. Nimbus is currently a brand name, but Dyer said the company plans to make it a division in the future. HyprCool is sold by EMSCO’s own salespeople, with a focus on the ruggedness of the equipment. It’s also going to be making a private label option for an unnamed manufacturer, and it offers a dry cooling system made by another manufacturer. It does not offer any evaporative systems.

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CRAIN’S CLEVELAND BUSINESS

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Grapes used to make ice wine sit on the vine, freezing and waiting for harvest at Ferrante Winery & Ristorante in Geneva. (Contributed photo)

Grand River Valley ice wine makers looking for perfect chill Looking for a 2014 vintage ice wine, the sweet dessert offering that is becoming a signature product of Northeast Ohio’s Grand River Valley vineyards?

Well, you will be disappointed.

That year, the primary wineries making ice wine in the Grand River Valley in far Northeast Ohio produced zero barrels, thanks to the polar vortex that slammed the area, destroying many vines. While it may be hard to believe that cold weather destroyed the potential of a cold-weather product, sometimes there’s too much of a good thing when it comes to the delicate balancing act of wine production.

This year, despite a record-breaking warm November, wineries are optimistic — based on forecasts of typical December temperatures and a slightly colder January — that Northeast Ohio’s ice wine production will get back to speed. Now until the end of January is the “make or break” time.

About 25 wineries call Grand River Valley home. Of those, about half make ice wine in the valley, which is one of the rare regions in the world able to produce the sweet beverage — a place where vintners can count on the cold temperatures (18 degrees or lower before harvest) needed to let the grapes freeze on the vine before they are picked. The frozen grapes, with their concentrated sugar content, are then immediately pressed before they thaw.

Canada and Germany are the world’s largest producers of ice wines. Upstate New York is also a noted producer.

While ice wine production has minimal impact on overall sales — on average, 1% to 5% for the handful of area vineyards that produce it — its production is a matter of pride for Grand River Valley wineries. And it’s a great marketing opportunity, according to the Ohio Wine Producers Association.

It’s a prestige product because of the risk involved.

“The gamble is significant,” said Donniella Winchell, OWPA executive director. “The grape most often used (for ice wine) is the vidal blanc,

Susan Condon Love is a freelance writer who was an editor and writer at The Plain Dealer, The Las Vegas Review-Journal, the Savannah (Ga.) Morning News and The Annapolis Capital.

which also makes a very nice and popular wine. … Leaving an acre or so of the grapes on the vine to freeze — if the weather cooperates — is undeniably risky.”

Memories of weather impacting ice wine production still sting.

“Luckily, we picked our vidal blanc grapes in 2013 just weeks before the first frigid storm (the polar vortex) hit, so at least that harvest was saved,”

“The gamble is significant. The grape most often used (for ice wine) is the vidal blanc, which also makes a very nice and popular wine. … Leaving an acre or so of the grapes on the vine to freeze — if the weather cooperates — is undeniably risky.”

— Donniella Winchell, OWPA executive director

said Cindy Lindberg, owner of Grand River Cellars in Madison. “The ice wine harvest of 2014 was virtually nonexistent, and the year after that was slight as well. We are finally back up to the typical yields.”

The economic impact of one year lost was minimal, but efforts to raise consumer interest mean production should be consistent and even increase, winery owners said. “(Ice wine) is not a cash-flow item.

It is an item that builds reputations. It is part of our regional identity,” said Tony Debevc of Debonné Vineyards.

“Ice wine is extremely important to our region,” said Lindberg. “It’s another product that puts us on the map and also a product that we produce very well.”

On the map, indeed: Grand River Valley’s biggest marketing tool is the Ice Wine Festival that routinely attracts more than 3,500 visitors to the area the first three Saturdays in March, according to Winchell. The wineries participating in the festival are Debonné Vineyards, Ferrante Winery & Ristorante, Grand River Cellars Winery and Restaurant, Laurello Vineyards and St. Joseph Vineyards.

“We do not have current economic impact figures on the festival, but it is significant,” Lindberg said.

Hotels are booked solid, she said, “and people spend tens of thousands on cases of other wines.”

Debevc was optimistic for this winter’s product.

“2014 and 2015 were disasters,” he said. “However, 2016 was good, and 2016-17 is looking very good. We are not panicking. We can pick as early as Thanksgiving to late in January, so we have a lot of time now for everything to work out all right.”

Nick Ferrante, of Ferrante Winery & Ristorante, also has faith that the weather will cooperate.

“The almanac is hopeful,” he said.

Meanwhile, vintners are hoping for a nice cold winter — but not too cold. Perhaps Grand River Valley wineries empathize with Goldilocks: The temperature has to be “just right.”

“It’s all up to Mother Nature,” said Winchell.

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PA G E 10

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CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

Education is key to filtering fake news

Editorial

Clarity, please Last Thursday, Dec. 1, was supposed to mark something of an early Christmas present for a fair number of middle-income Americans.

On that day, an estimated 4.2 million workers were to become eligible for extra pay when they worked more than 40 hours a week, the result of a Labor Department regulation proposed last May that would have raised to $47,476 from $23,660 the salary level at which workers are exempt from overtime pay.

But in a year in which many things didn't go as expected, there was a twist: A federal judge in Texas on Nov. 22 blocked the proposed rule, handing a temporary victory to more than 20 states and many business organizations that contended the change would be bad for business (too costly) and was poorly implemented (Congressional approval would have been nice).

Welcome as that ruling might have been to the corporate community, it has added confusion and uncertainty to what for many companies is a perennially contentious issue.

The Washington Post reported, for instance, that the 11th-hour delay of the rule “created confusion for some employers that have spent the past several months preparing for the regulation. Some companies offered raises to managers so that their salaries would be above the proposed threshold. Other workers were set to become eligible to be paid time-and-a-half on any time worked beyond 40 hours a week. ... Some workers were moved from salaried jobs to hourly roles, meaning they would have to clock in and out.

Other employees were set to start working fewer hours.”

A communication issued to clients by the Vorys law firm noted that the Labor Department could appeal the federal court ruling to the U.S Court of Appeals, or the incoming Trump administration or Congress could take up measures addressing overtime pay.

For now, though, the situation has put companies in an uncomfortable position of, as Vorys noted, “placing those (salary) increases on hold and adopting a wait-and-see approach; or implementing those increases if they have already been communicated.”

In short, companies need clarity, and they need it soon. It

serves no one — workers hoping for a little extra in their paychecks, or companies trying to navigate these complex waters — to have this period of limbo extended for any length of time.

Our preference would be for Congress to take a close look at federal law on overtime eligibility and come up with clear standards for companies to follow. Congressional action, rather than Labor Department rulemaking, would eliminate the kind of confusion that has resulted from the federal judge's ruling.

The Post noted that U.S. Sen. Lamar Alexander of Tennessee and four other Republicans earlier this year proposed adopting the Labor Department's higher overtime salary threshold by phasing it in over four years, starting in 2017 and with possible exemptions for nonprofits and government entities.

That strikes us as a reasonable compromise that would provide companies with some certainty and provide workers — many of whom voted for Donald Trump with the hope of greater economic prosperity — with relief in an era of stagnant-to-declining pay.

Good run

U.S. Rep. Tim Ryan of Youngstown took a big chance when he decided to challenge Rep. Nancy Pelosi of California as House Democratic leader. He didn’t win — Pelosi retained the title in a 134-63 vote — but Ryan garnered enough support to raise his profile in the House and to call attention to a structural problem that hampers the Democratic Party at the national level.

Three of the country’s most liberal states — California, Massachusetts and New York — now account for one-third of the Democrats’ members in the House. That coastal dominance is not healthy for a party that needs to reconnect with voters in the middle of the country. Ryan’s not in leadership, but he should continue to find ways to use his now-amplified voice to assert that his fellow Democrats take seriously the concerns of voters in Ohio and other states who are becoming increasingly alienated from the party.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

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An Ohio State University student made a comment in the aftermath of last week’s attack at the OSU campus that caught my attention.

Responding to a Columbus TV station reporter, the young man said: “I don’t want to spread any rumors and say anything I do not know for sure.”

What a refreshing response when we seem to be swimming in a cesspool of fake news and 24-hour news cycles demanding to be filled. If only more people had the desire, like this student, to verify before speaking or sharing information.

The proliferation of fake news on social media has gotten a lot of attention the past few weeks. A recent BuzzFeed analysis found that among the top-performing election stories on Facebook, false stories got more shares than real mainstream news in the three months Elizabeth leading up to November election.

McIntyre False stories that did particularly well included one that said the pope had endorsed Donald Trump, while another claimed Hillary Clinton sold weapons to ISIS. A story that made the rounds in early November on Facebook — “FBI agent suspected in Hillary email leaks found dead in apparent murder-suicide” — generated, in 10 days, 1.6 million views on the fake news website DenverGuardian.com.

NPR tracked down Jestin Coler, the man behind the fake site.

Coler is the CEO and founder of Disinformation, which owns several fake news websites like DenverGuardian.com.

From the NPR story: “Coler makes money from the ads on his websites. He wouldn’t give exact figures, but he says stories about other fake-news proprietors making between $10,000 and $30,000 a month apply to him.”

These clickbait headlines line the pockets of Coler and others like him. They also poison the pool of real news and threaten an essential free press tenant of our democracy. If we don’t know what is fake and what is real, how will we make informed decisions?

One solution is to motivate and educate consumers of information to vet the sources, separate fact from fiction, and, like that OSU student, refuse to pass along rumors and falsehoods.

Some people may maliciously pass along fake news for ideological or personal reasons, but many more are just duped.

I asked Jan Leach, a Kent State University associate professor of journalism, whether we need to start teaching media literacy on the college level. Leach said that was much too late.

“We need to start younger,” Leach said. “Young kids live with their cell phones nowadays. They share things without a sense that they might be wrong.

“We can’t explain to students at a young enough age what is opinion and what is fact. A lot of their news habits are already formed by the time they get to middle school.”

Yes, middle school. A Stanford University study found that more than 80% of middle school students could not distinguish between paid content and a real news article.

“Many people assume that because young people are fluent in social media they are equally perceptive about what they find there,” said Stanford professor Sam Wineburg, the lead author of the report. “Our work shows the opposite to be true.”

Media literacy ought to be a part of the K-12 curriculum. It is the essence of critical thinking. In the meantime, Google it.

Fact-check it. Look at websites like Snopes.com and FactCheck. org. Make sure that the information you are seeing is coming from a reputable source.

Once that’s done, you are free to pass it along, take issue with it, complain about bias, praise its fairness. Whatever your reaction, it will be based in reality.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com.

Please include a telephone number for verification purposes.

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Personal View

Permitting energy markets to drive production reduces emissions, costs

By CHRIS ZEIGLER

After a contentious, polarizing election season, it may seem as though Americans don’t agree on much of anything. But, as political analysts continue to sort through the exit polls, some noteworthy areas of agreement emerge that could form the basis for consensus-based policy progress.

One of those issues is energy. A nationwide, election night poll of actual voters found that 80% of Americans support increased development of U.S. oil and natural gas resources, including 71% of Democrats, 94% of Republicans and 76% of independents.

Further, overwhelming majorities recognize that increased production can help achieve important priorities like job creation (86%) and lower energy costs (82%). Seventy-seven percent support natural gas’ role in reducing greenhouse gas emissions.

Policymakers should take note of the connection between oil and natural gas production, economic benefits and emissions reductions. As Ohio lawmakers and the governor consider restructuring the state’s renewable and energy efficiency portfolio mandates, it’s important to recognize that clean, affordable and reliable natural gas produced right here in Ohio will significantly reduce power generation emissions at a lower cost than mandates.

The American Petroleum Institute’s latest research shows that by the year 2030, CO2 emissions will be 30% lower than in 2005 if market forces are allowed to determine our generation portfolio. That’s because natural gas-fired power plants produce less than half as much CO2 as coal plants. As older coal plants retire and new natural gas plants come online, emissions

will automatically decrease, without costly mandates.

Thanks to our nation’s great abundance of natural gas, gas-fired power plants are also the most cost-effective way to reduce CO2 emissions. Gas-fired plants are cheaper to build and maintain than wind, solar and nuclear generation.

Independent sources agree that natural gas prices will remain low and stable for many years. Natural gas prices are currently about $3 per MMBtu and are forecast to remain near or below $5 per MMBtu through the year 2040.

We have enough reliable, low-cost natural gas to meet demand for generations to come. As a result of continual improvements in drilling technology, the amount of recoverable natural gas reserves grows each year.

Technological improvements such as horizontal drilling are also allowing the industry to produce more natural gas with fewer rigs, reducing environmental impact.

In 2015, on average, the industry operated just 200 rigs nationwide to produce nearly 75 billion cubic feet (Bcf) per day. That’s a great improvement when compared with 2010, when over 900 rigs produced 58 Bcf per day.

We are already seeing the environmental benefits of natural gas-fired power plants. Earlier this year, natural gas surpassed coal in becoming the nation’s leading power generation fuel source. In Ohio alone, over 6,000 megawatts of new, clean-burning natural gas-fired power plants are in various stages of development.

That’s enough electricity to power 6 million homes, with reduced emissions and lower costs for consumers.

Natural gas-fired power generation also makes renewable generation more practical to operate. When the wind isn’t blowing or the sun isn’t shining, natural gas SEE ENERGY, PAGE 12

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CRAIN’S CLEVELAND BUSINESS

ENERGY CONTINUED FROM PAGE 11 plants are uniquely capable of rapid starts and ramping up to respond promptly to unplanned outages and changing power demands during the day. Natural gas power plants help fill in the gaps during nonproducing periods of renewable generation, ensuring consumers have reliable electricity around the clock.

For those customers who still prefer to maximize renewable energy sources, our state already has optional green energy pricing programs in which they can participate through their electric supplier. Green pricing programs in Ohio offer customers the opportunity to support alternative energy sources by paying a premium in addition to their regular utility bill, a market-based approach to supporting renewable energy without burdening all customers with the additional cost of mandates.

Utilizing more natural gas will also help create jobs and grow our economy. Ohio is fortunate to have enormous natural gas shale deposits. As more natural gas is used to produce electricity, demand for the resource will increase, providing a sustainable boost to Ohio’s economy.

The simplest, most cost-effective way for Ohio leaders to reduce air emissions is to allow energy markets to work. Mandating renewables and energy efficiency may result in higher costs to reach emissions goals than if markets are allowed to drive power generation. As the benefits of new gas-fired generation take effect, CO2 emissions will automatically decline, giving us cleaner air at the lowest possible cost.

Zeigler is executive director of American Petroleum Institute Ohio.

Personal View

Tourism support spurs Ohio’s economic growth

By MELINDA HUNTLEY

As a perennial battleground state for the presidential election, we in Ohio relish being a political destination for candidates aspiring to the White House. This election cycle, we welcomed the traveling caravans, whistle-stop tours, and even Air Force One as it carried current, former and hopeful occupants of the White House.

Ohio’s mark on the electoral map was even greater this year as we opened our restaurants, hotels, streets and hearts to the Republican National Convention. We proudly put on a world-class event, and sent a loud and clear message to travelers around the globe: If Cleveland isn’t on your itinerary, you’re missing out.

In the same way candidates knocked on our doors, lit up our phone lines and blanketed the airwaves asking for our support, the state of Ohio and its private-sector partners do much the same to entice travelers — domestic and international — to come stay in our hotels, eat in our restaurants and enjoy our distinct and beautiful destinations.

Now, we ask President-elect Donald Trump to stand by his commitment to improve our nation’s infrastructure to bring even more visitors and economic growth to our region.

The travel industry in Ohio is big business.

Collectively, travel and tourism generate over $42 billion in spending for the state. Recent es-

timates by TourismOhio, our state’s chief travel authority, reveal that travel supports more than 420,000 jobs, up from 412,000 just two years ago.

Last year, we welcomed 207 million visitors, representing a steady increase from 200 million in 2014 and dramatic growth from just 181 million in 2011.

With this in mind, our industry came together during the election season to remind lawmakers and candidates for public office to take notice of the growing momentum of the travel industry, and to embrace policies that can drive further growth for our state’s economy. At every level of government, programs and policies that support the travel economy are bipartisan and proven winners for Ohio’s economic growth.

As one example, we applaud the Ohio Legislature’s commitment to promote Ohio with its investment in TourismOhio, which led to the agency’s recently unveiled “Ohio. Find it Here.� branding to attract visitors to the state.

We hope that the legislature continues to support this initiative so that we can broaden the reach of this campaign and increase travel to Ohio.

Our federal lawmakers can take the lead with several critical policy opportunities before Congress right now.

They can champion international travel by continuing to strengthen our diplomatic relationships with our allies, allowing us to ensure effective security and maintain

smooth travel between countries.

Congress can also address efficiency at the airport by supporting the Transportation Security Administration’s (TSA) efforts to appropriately staff security checkpoints, eliminating long lines.

Moreover, Congress should authorize more flexibility in funding streams so TSA can more rapidly grow TSA PreCheck membership throughout the country.

Finally, Congress has the ability to boost airline competition by placing more financial authority in the hands of our airports. Such control gives them the capacity to raise capital funds for improvement projects that can attract new carriers to serve the ever-increasing amount of consumers seeking to travel here.

It is no secret that Ohio has been hurt over the years as a result of airline mergers and consolidation. Congress should increase the cap on the Passenger Facility Charge, a user fee that airports can harness when seeking investments to build and modernize their facilities to attract new air service.

Ohio ranks seventh in the nation in the number of jobs supported by travel. Across the state and federal policy landscape, there are plenty of options for lawmakers to embrace championing travel to Ohio so that we remain a top destination and employer.

Huntley is executive director of the Ohio Travel Association.

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Fighting Fraud How Cleveland companies can take action “Fraud attacks against businesses are on the rise.

As new technologies proliferate, hackers are finding more sophisticated ways to target unsuspecting victims, potentially harming companies and their customers.”

Raju Patel, Market Executive Bank of America Merrill Lynch

“Firms of all sizes can be vulnerable. Upgrading systems and educating employees are essential to preventing breaches — and preserving your assets and reputation.”

Sam Prentis, Market Executive Bank of America Merrill Lynch

Shared vulnerabilities

Rising stakes

Education and upgrades

Fraud is a growing threat to both businesses and their customers.

Payment fraud, one of today’s most prevalent schemes, involves attempts by outsiders to hack into business email systems. A successful attack can compromise wire transfer payments and expose sensitive account information.

Despite several recent highprofile fraud attacks, only 18% of companies view data security as a threat to earnings. But fraud losses can be devastating. Hackers can steal companies’ financial assets and intellectual property, along with sensitive customer data — eroding profits and trust.

Educating employees is the first line of defense. “Phishing,” “spoofing” and other fraud types are often preventable, if monitored properly.

In addition, upgrading IT systems can reduce risk while boosting efficiency and visibility.

A growing threat

Adding up

33%

of companies have been targeted by fraud attacks1

Don’t be fooled A “phishing” scam can lure employees to click malicious links or attachments

Estimated annual losses from data and identity theft2

For more local insights, email us at sam.prentis@baml.com or raju.n.patel@baml.com.

Source: 12015 AFP Risk Survey, 2McAfee, 2013 “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities.

Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2016 Bank of America Corporation. ARNX3YHB 09-16-0629.C CAD-09-16-0629_C.indd 1

11/8/16 1:21 PM

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CRAIN’S CLEVELAND BUSINESS

TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.

LIENS FILED Agape Home Health Care 540 E. 105th St., Suite 305 B, Cleveland Date filed: Oct. 5, 2016 Type: Failure to file complete return, employer’s withholding Amount: $46,716 C-Mach Inc. P.O. Box 40057, Bay Village Date filed: Oct. 5, 2016 Type: Corporate income Amount: $28,500 Malkir Inc./Finn Cafe 4641 Broadway Ave., Cleveland Date filed: Oct. 5, 2016 Type: Employer’s withholding, unemployment Amount: $26,731 Avoy Homecare LLC P.O. Box 12105, Cleveland Date filed: Oct. 5, 2016 Type: Failure to file complete return Amount: $24,533

Hair Studio 225 Ltd. 6230 Stumph Road, Parma Date filed: Oct. 5, 2016 Type: Employer’s withholding Amount: $22,471 (two liens) Agresta Landscaping Inc. 11424 W. 130th St., Strongsville Date filed: Oct. 5, 2016 Type: Employer’s withholding Amount: $22,052 Treehuggers Cafe Inc. 133 Bagley Road, Unit 1, Berea Date filed: Oct. 5, 2016 Type: Employer’s withholding Amount: $13,651 MRSO Elite LLC/Elite Answering Services 20800 Center Ridge Road, Suite 205, Rocky River Date filed: Oct. 5, 2016 Type: Employer’s withholding Amount: $12,938 Golden Harvest Market LLC 3038 Payne Ave., Cleveland Date filed: Oct. 5, 2016 Type: Employer’s withholding Amount: $12,494 Tradesman Tavern 5746 State Road, Parma Date filed: Oct.5, 2016 Type: Employer’s withholding Amount: $11,433

Classco Realty Corp. LLC 1600 Oakwood, Cleveland Date filed: Oct. 5, 2016 Type: Employer’s withholding, unemployment Amount: $7,784 April Noelle Hart Co. LPA 2529 Canterbury Road, Cleveland Heights Date filed: Oct. 5, 2016 Type: Employer’s withholding, corporate income Amount: $7,342 Savor Inc./Sweet Melissa 19337 Detroit Road, Rocky River Date filed: Oct. 5, 2016 Type: Unemployment Amount: $6,723

LIENS RELEASED Ganeden Biotech Inc. 5800 Landerbrook Drive, Mayfield Heights Date filed: Sept. 22, 2015 Date released: Oct. 5, 2016 Type: CIVP Amount: $30,800 Johnny’s Tavern & Restaurant Inc. 3164 Fulton Road, Cleveland Date filed: May 13, 2014 Date released: Oct. 5, 2016 Type: Employer’s withholding Amount: $18,378

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Focus

Thea Wilson

Noel Santa

Christine Fowler-Mack

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David Wintrich

Who to watch in education

I

ncreasing standards, funding challenges and other obstacles make the education field a complicated sector in which to work. The people featured in this section come

from all corners of the education industry. They are all working to make their mark in this field, be it in the classroom, an administrative role or behind the scenes. These individuals might fly under the radar now but could disrupt the field — for the better — in the future.

Pamela DiPasquale

Tara Henderson

Emily Samek

Gary Sardon Jr.

Laurie Ewert-Krocker

Doug Hamilton

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WHO TO WATCH IN EDUCATION

Noel Santa

Gary Sardon Jr.

Critical care course coordinator, Breen School of Nursing at Ursuline College In preparation to take the certification for critical care nursing, Noel Santa taught herself the material, a feat which she considers one of her most significant accomplishments. Now in her third year as a nursing instructor at Ursuline College, Santa hopes to promote self-learning in her students.

Through a flipped classroom approach, students read material at home and then are more actively engaged during classroom time as she teaches them about critical care nursing.

“They’re quite capable of reading all that information and then to bring that to the classroom, so that we can talk about the concepts in a more engaging and interactive manner,” she said. — Lydia Coutré What got you interested in education?

When I first started in critical care, I worked in a Med-Surg ICU and I was the unit educator for the staff, and I absolutely loved it. So I thought this is what I want to do, and then as time went by I saw the different changes occurring in health care and the emphasis on quality and how important it is for nurses to be able to critically think. It really reinforced that I wanted to be a part of teaching the next generation and trying to promote that quality care and their ability to critically think about what’s going on with their patients.

Describe your teaching philosophy.

So there’s a lot of different defini-

Principal, Saint Martin de Porres High School

What others are saying: What do you expect to see her do in the future?

tions of the flipped classroom, but essentially, in the flipped classroom, teachers will do the homework aspect that they would expect the students to do at home in the classroom and the reading aspect or the lecture content at home. Part of that philosophy is that the students do come prepared.

They have to have the readings done.

What keeps you motivated?

Knowing that at some point I am making a difference in patient care.

That’s what I tell my students. It’s ultimately about quality patient care.

My dad says that I am impacting not just one patient by doing bedside care but thousands of patients because I’m teaching the next generation. And that’s kind of how I look at it.

“I expect her to be a mentor. She’s already started being a mentor for new teachers, which is unusual to see with somebody at this younger age of teaching. She’s now a mentor for new educators and I see her being a master teacher, teaching new faculty.”

—Patricia Sharpnack, dean of the Breen School of Nursing at Ursuline College

Five things Hobbies: Cooking and reading Best dish: She makes ‘a mean marinara sauce.’

Favorite book: ‘Pride and Prejudice’

by Jane Austen Favorite travel destination: Ireland Guilty pleasure: A mid-afternoon nap

Gary Sardon Jr. is the first to admit he did not set out to be a high school principal, or even an educator, for that matter. The Shaker Heights graduate was on his way out of a career fair when he ran into a former employer who was working for a Jesuit school in Baltimore.

“I thought ‘Let’s give this teaching thing a try,’” he said.

“It was not a long-term plan, but once I started getting into it, learning more about the stories of young people, where they are and where they wanted to go, it became part of my life. It is who I am.”

Sardon taught in Baltimore for nine years before taking a teaching position in Bogota, Columbia, in 2011. In 2014, he returned home as the principal of Saint Martin de Porres High School, a private Catholic school in Cleveland. — Judy Stringer You were working overseas. What brought you back to Cleveland?

Students is the short answer. One of things I like about this place and why I love being here is the sense of family and sense of community among the student body.

Whenever something happens outside of our school, nationally or locally, our students are engaged. Whether it is a ‘Take Back the Night’ protest or protesting police brutality, they are very committed to the community around us and changing it. Seeing part of my life through them and their stories just resonated with me.

What has surprised you most about working in school administration?

As soon as you think you’ve got it figured out, you are always learning something new. At some point in teaching, I kind of thought I had it, but when you are an administrator, every day is a new learning experience.

What is the biggest misconception about high school principals?

Most people think of them being strict disciplinarians, rigid and tough. We like to smile. We like to engage students, families and teachers. We have feelings too. We are not just figure heads. We are real people.

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WHO TO WATCH IN EDUCATION

Christine Fowler-Mack Chief portfolio officer, Cleveland Metropolitan School District Five things Favorite spot: He’s been all over the world, but prefers his living room.

Hobbies: Going to dinner and to Indians games Must-do in Cleveland: Summer, an Indians game; fall, University Circle

What others are saying:

First job: Maintenance worker at an ice skating rink

Gary is in his third year as principal. What has he brought to Saint Martin De Porres family?

Growing up: He wanted to be a doctor.

“In addition to the strong academic direction Gary sets forth for our community, his deep, genuine love and respect for our students and their families are what make him the ideal leader of our school.”

As chief portfolio officer, Christine Fowler-Mack works on everything from developing new schools in the Cleveland Metropolitan School District to establishing relationships with businesses and organizations that want to support the ongoing work to transform the district into a high-performing network of schools.

But when she started as the chief of new and innovative schools with the district in 2009, the goal was to show that Cleveland’s students had what it takes to succeed, and that the district could change its schools to better serve them. Staff and parents had to be engaged, flexible resources needed to be offered and the district had to focus on the kinds of skills students would need in the future, she said.

“It was trying to create those conditions and to build schools that could prove that this could be done with the students we serve,” Fowler-Mack said. — Rachel Abbey McCafferty How is this work important for Cleveland overall?

I think the state of education is a really, really important indicator into the health and long-term viability of a community. So I think we have a moral imperative to really make sure that we have an educated citizen base. But also in economic terms, really, the city is going to need talent. And a wide range of talent.

— Rich Clark, founding president, Saint Martin de Porres

part. Them and their families. I’m also inspired by our staff, who I think work tremendously hard to try to achieve excellence. And I’m inspired by this community. You know, Cleveland has had a story of a comeback city, the grit defines us, things of that nature. But the city has really pulled together around education.

What others are saying: What makes her someone to watch?

“She is really able to think from a big-picture point of view.”

When did you know you wanted to go into education?

Always. I fought it. You go through a stage of, I’m not going to do that because I wanted something, I thought, more exciting and more gratifying longer term. I tell folks often, I think half of the quest all of us face when we’re going through life is trying to figure out our purpose. And so, I do think earlier on, I knew my purpose but it’s also turned into a real passion for me.

What inspires you?

The kids themselves. I’m from a working class family, yet many of our students — I’ve never had anywhere near the challenges that they face on a day-to-day basis. So I am absolutely inspired by them, that they get up every day, they come, so they’re doing their

— Eric S. Gordon, CEO, Cleveland Metropolitan School District

Five things Akron recommendations (from an Akron native): The ‘hidden gems’ downtown, especially in arts and culture Outside of work, you can find her: With her kids, Kyndall and Kyle Favorite music: Everything, from classical to jazz People she looks up to: Her father, Michelle Obama, Frank Jackson and Albert Ratner Hobbies: As an ‘avid student’ of leadership, she can often be found reading or attending a conference.

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WHO TO WATCH IN EDUCATION

Emily Samek

Director of academics, Boys Hope Girls Hope of Northeast Ohio A dream about what to do with lottery winnings led to a chance meeting that turned into a dream job for Emily Samek.

At Boys Hope Girls Hope of Northeast Ohio (BHGH) — a program that provides at-risk children with stable homes, education, and financial and emotional support — Samek is designing a holistic curriculum that provides after school, weekend and summer learning experiences for 144 students from sixth grade through college.

“I taught in urban schools in Boston for most of my career and knew there was potential in a place like BHGH,” Samek said. “Every teacher out there thinks at some point ‘I wish I could take this student home.’ This organization is doing something for those students who are motivated to carve out their path toward college.”

— Kimberly Bonvissuto How did you get involved with BHGH?

I was a high school math teacher in Boston in 2014. During a snow day, I was at a bar with colleagues watching people go in and out of a corner store to buy lottery tickets. We began talking about what we would do if we won. My dream was returning to Cleveland to buy property and build a community center that also housed high school students. A friend mentioned BHGH was already doing that.

I met BHGH Executive Director Tim Grady, and the rest is history.

Five things Favorite travel spot: Crane Beach in Ipswich, Mass.

Favorite book: ‘The Amateurs’ by David Halberstam Favorite spot in Cleveland: Cuyahoga River at sunrise from the seat of a rowing shell Bucket list item: Seeing the Northern Lights in Iceland Mentor: ‘Is Michelle Obama looking for something to do these days? Tina Fey?’

Why did you get into education?

I fell in love with mathematics during my freshman year at John Carroll University. At the same time, I was learning about social justice and the Jesuits totally reeled me in. Once I read Jonathan Kozol and started opening myself up to what was happening in our education system, it was clear that math education was my path.

urban settings. We may be an after school, weekend and summer program, but there is plenty to be learned about teaching and learning in this setting that translates to the middle and high school classroom setting.

What others are saying: What impresses you about Emily?

“Emily and her colleagues are doing God’s work at BHGH and should be What are your long-term goals recognized for what they with BHGH? have done and what they We launched a campaign to build “Count On - T. Neikirk” an Academy Center on our Garfield will do to improve the Heights campus to fully implement Crains - 6” x 6” education of promising, our vision to service the whole child at a deeper level. One goal is to part- yet disadvantaged kids.” ner with a local teacher education program to serve as an incubator for young teachers looking to serve in

— Pat Hyland, associate principal, Westlake Reed Leskosky

David Wintrich Co-founder, chief academic officer, Tech Elevator

David Wintrich is a different kind of educator.

He didn’t come up through public school systems or a university. He came to education after a career with Fortune 500 companies and the Federal Reserve Bank of Cleveland. He had always been developing software and managing teams of software engineers. He had seen how important programmers are and how the field was providing stable careers. He’d also seen firsthand how hard it was to find good programmers in the United States.

So, he quit his job as a senior software developer at the Federal Reserve to help found Cleveland’s Tech Elevator, a 14-week intensive-training boot camp that turns students into in-demand software developers. — Dan Shingler Did you always want to go into a technical field like computers?

No, I didn’t really have much exposure to computers, the internet or anything like that prior to going to college. I was a broadcast major. I guess I thought I was going to be a weatherman. I took a computer course as an elective, on a lark. But I got some exposure to it, switched my major to computer science, and the rest is history.

Just like a lot of your students today are changing careers?

Yes. That’s what made coding boot camp so attractive to me. I know how easy it is for someone to go off to college and then one day say, you know what, ‘I really don’t want to be an accountant.’

You used to guarantee students a refund if they didn’t find jobs quickly. Ever have to pay that out?

No (laughs), that’s not part of our promotion anymore, we no longer need to do that. But we never had to refund anyone. I never thought finding jobs for students would be a problem. When I worked at the bank, I helped build out their team, so we went from like five programmers to 25 programmers in the span of about two years. I saw

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WHO TO WATCH IN EDUCATION Five things Favorite authors: Ralph Waldo Emerson, J.R.R. Tolkien Favorite vacation spot: Glacier National Park, Mont.

Best way to spend a rainy day: Playing board games with friends (Settlers of Catan, Puerto Rico, Stone Age, etc.)

how difficult it is to get people who can do this work.

Are you happy you took a risk to found Tech Elevator?

Yes. It’s been really rewarding. I feel thankful I’ve found a profession I enjoy so much. This works for me on so many levels. It's entrepreneurial, doing good, it’s technical. We’re truly helping people to change their lives and their career trajectories.

Passport Stamps: Mexico, India, Jordan, Greece Best place to have a gift certificate: Any place that sells diapers. He has two children under the age of 2.

What others are saying: How would you describe David?

“He is very easy going, really knows his stuff, and is committed to making sure his students are succeeding and getting the most out of their education.”

— Sam Ziegler, Tech Elevator Cleveland graduate

Ursuline College commends Nursing Instructor Noel Santa MSN, RN, CCRN, and all of our innovative educators, for teaching and inspiring the next generation of professionals.

Thea Wilson

Vice president of children and families, Council for Economic Opportunities in Greater Cleveland Thea Wilson is part of the management team, under president and CEO Jacklyn Chisholm, that has rebuilt the reputation of the Council for Economic Opportunities in Greater Cleveland after a stormy four years that saw the social service agency cited for deficiencies in its Head Start program and its former president and CEO, Jacqueline K. Middleton, resign amid a bribery scandal in 2015.

CEOGC is a nonprofit that offers job readiness and job placement programs, personal and professional development programs and educational programs to residents of Greater Cleveland. As vice president for children and families, Wilson manages the programs at the nonprofit’s 14 Early Head Start and Head Start centers.

A teacher specializing in early childhood development for nearly 40 years, Wilson taught at several Cleveland Metropolitan School District schools, served as the executive director of the district’s Office of Early Childhood and chair of early childhood at The Music Settlement before joining CEOGC. — Jay Miller Why did you leave The Music Settlement for the turmoil of CEOGC?

For me, it was a challenge. Actually, George Forbes (a former Cleveland City Council president who served as CEOGC board chairman until 2015), who I knew, asked me to come in and stabilize the situation. Um, leave singing and dancing? I really had to weigh this. It was not an easy decision, but it

Five things Hobby: Singing, from jazz to classical Favorite dessert: Chocolate Kahlua cake Upcoming vacation: Jamaica Favorite movie: ‘The King and I,’ the one with Yul Brenner Reading: ‘Hamilton’ by Ron Chernow Do you have a chance to be with kids now that you’re an administrator?

was definitely a good decision. When it comes down to it, this was the only place I could be.

When did you realize you wanted to teach?

After the Hough riots (in 1966) I was not quite a teenager and I volunteered for a six-week summer program through my church to go to Hough and play with children. (Wilson grew up in Cleveland Heights). One day, my mother packed an orange in my lunch and this one little boy looked at it and asked, ‘What is that?’ I was shocked but a social worker told me that he didn’t know. I explained it to him and offered a piece to him. That little boy followed me for the remainder of the summer.

That’s when started me to think I could be a phenomenal teacher.

I get ‘children fever’ and have to be around children. So Dr. Chisholm and I have what we call our ‘Red Shoe Tour.’ We put on red high-top Converse sneakers and go out to a Head Start center and read the kids ‘Pete the Cat: Rocking in my School Shoes.’

What others are saying: How would you describe Thea?

“She’s brilliant and has been committed to Cleveland’s children for her entire career. She’s an unsung hero because she cares about others before herself.”

— Jacklyn Chisholm, president and CEO, Council for Economic Opportunities in Greater Cleveland

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WHO TO WATCH IN EDUCATION

Laurie Ewert-Krocker

Pedagogical director, Hershey Montessori School middle school and upper school Laurie Ewert-Krocker began her career as a writing teacher at Cleveland State University. Back then, she was flanked by 18- to 20-year-olds who, she said, “were struggling and had lost faith in themselves or in the system of education.” About that same time, she and her husband enrolled their own preschoolers in Western Reserve Montessori, which is now Hershey Montessori School, and Ewert-Krocker “was blown away” by what her little ones were doing.

“I realized I was in the wrong arena,” she said. “I really wanted to be a part of education that was cultivating a love of learning and a sense of engagement and citizenship in the world.”

Fast forward 27 years later, Ewert-Krocker is pedagogical director for Hersey’s middle and upper school programs and program director for the Huntsville campus, also known as the “The Farm.” — Judy Stringer Why did you pursue education?

It was as a parent, primarily. I saw joy in learning disappear in students.

I did not want that to happen to my children. What I saw in Montessori was excitement, nurturing, joy and a desire to keep learning. We don’t learn by people telling us things. We learn by pursuing and opening up possibilities and self-constructing.

What’s the most challenging part of this work?

It is sometimes hard to maintain vision and idealism in a world that is

is struggling with a lot of turmoil. If you don’t maintain that faith, you can’t serve them, and they will know immediately that you do not believe in the possibility of their future being positive.

What others are saying: What makes Laurie a valuable educator on your team?

fairly cynical day-to-day. And, we work really hard. To do this kind of work, you commit to being a whole person yourself. We do many different things. We don’t just teach math.

We involve ourselves with the activities. We are designing projects; there is not a textbook. If we decide to get a new cow, it becomes a project for the community, and it becomes a challenge then to design a project for students that will allow them to participate as fully as possible.

What is the most important lesson you’ve learned in 36 years of education?

You have to wake up every day and walk into their presence and have faith in them and their future. It is very easy to lose that in a culture that

Great Minds don’t Think Alike

“She is a constant learner, and she models that for her staff and students.

She travels and consults with others around the world and brings it back to continue to explore and try new things.”

— Paula Leigh-Doyle, head of school, Hershey Montessori

Five things Hometown: Chardon Favorite book: ‘Moby Dick’ Professional involvement: Member and past director, North American Montessori Teachers Association Go-to spot in Northeast Ohio: Geauga Park Chilling out: She cooks dinner with her husband to decompress from work stress.

Doug Hamilton Dean of admissions, Lawrence School

Doug Hamilton has a vivid memory of being placed in a group of struggling learners as a first grader in rural Minnesota. He had trouble with reading comprehension and was put in the “black birds” group that received instruction in a trailer next to the school.

“The instruction was slower paced, even though we weren’t slow kids. It was just the way things were done,” Hamilton said. “Going into education, I wanted to make sure my kids felt like they were the superstars. There were no ‘blue birds’ or ‘black birds,’ just birds.”

Not surprisingly, Hamilton jumped at the chance to work with struggling learners as part of the teaching team at Lawrence School, a private school with campuses in Sagamore Hills and Broadview Heights for students with learning differences, such as attention deficit disorder or autism. That was 27 years ago as a new college grad. Today, he directs the school’s admissions program, helping families identify the best educational setting for their child, even if Lawrence is not the right fit. — Judy Stringer Why did you pursue education?

Education offered me a few things. I knew I wanted to have opportunity to interface with kids, and I also wanted to make sure I had a good balance between home life and my professional life. Teaching allows you to do that. I wanted to make sure that when I had children, I was going to be around for them.

What has kept you at Lawrence for so long?

It is a teacher’s dream environment. You have a staff that is very cohesive — everybody knows that they are here for the same reason — parents who are committed to being here and are very supportive, and students who turn from ‘I can’t do this’ to ‘I did it.’ That happens every single day. I don’t know where else you can go to work and have that experience every single day.

Pamela DiPasquale

Director of education, Cleveland Play House Theater has the innate ability to equip people with important life skills like communication and creativity, said Pamela DiPasquale, director of education at Cleveland Play House.

In the six years since she took the position, DiPasquale has created nine education programs serving challenged neighborhoods throughout Greater Cleveland. Building stronger citizens via the arts is a powerful tool for a city on the rise, she believes. — Douglas J. Guth What educational benefits does theater deliver to a community?

We are working on communication between people through problem solving and critical thinking. For children living in high poverty areas, there’s an essential need for them to engage in theater and learn the techniques that go with it. It could be something as simple as an exercise that helps a student identify emotion, and control or manage that emotion through rehearsals. Theater is like a gym for empathy and emotional recognition.

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www.lawrenceschool.org Broadview Heights | Sagamore Hills

440.526.0717

What is the biggest challenge you face in creating educational programming at CPH?

The challenge comes not with building programming, or getting the community buy-in for it, but is usually around funding. The most varied resources we can get beyond initial funding is incredibly important. We see vast improvements when kids are attending our programming, so we want those improvements to be sustainable and long-lasting. What I’ve done my entire career is not only develop skill sets in being a theater and education practitioner, but I learned as much as I could about fundraising, too.

How do you feel about being part of the renaissance taking place within the city?

I couldn’t be more proud of CPH for the leadership role it’s taking, especially in educating our city’s most vulnerable children. The more work we do, the more we realize

CRAIN’S CLEVELAND BUSINESS

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WHO TO WATCH IN EDUCATION

Five things First job: Cleaning office buildings Bucket list activity: Bike around the state of Ohio Favorite app: Claro ScanPen Secret superpower: Laundry Old school: He’s an avid Cleveland sports fan, but he prefers to listen to games on the radio.

What others are saying:

#2017goals

What unique characteristics allow Doug to connect with students and families?

Start and Finish my MBA

“He is a remarkable listener, but more importantly he understands the journey that our students are on, the difficulties they encourage and the pain that their parents go through.”

— Lou Salza, head of school, Lawrence School

SET YOUR GOALS FOR 2017 EARLY. With Cleveland State University’s Accelerated MBA, in one year you can add M-B-A to your signature. Whether you come to campus on the weekend or take all of your classes online, our Global Accelerated MBA and nationally-ranked Online Accelerated MBA programs can significantly enhance your career and earning potential in 12 short months.

But don’t wait to apply. Classes start January 7.

What would you say to a student considering education?

csuohio.edu/mba

If you are committed to being a servant, go for it. Being a servant is putting others before self, and you are always ready to help. If not, you will be extremely frustrated. You have got to make sure you have the right mindset. You are going to be influencing the lives of the next generations.

What others are saying:

·

216-687-3730

·

cbacsu@csuohio.edu

LEARN ARN MORE TODAY ABOUT HOW CRAIN’S CAN HELP YOU AND YOUR CONTENT MARKETING PROGRAM. Contact Amy Stoessel at 216.771.5155 or astoessel@crain.com.

What are the skills Pamela brings to the table?

Five things Best advice she’s received: Before you talk, listen.

Favorite Cleveland hot spot: Cleveland Play House, of course Favorite movie: ‘Silence of the Lambs’ Bucket list item: Attend the inauguration ceremonies of the first female president of the United States Recent favorite read: She just re-read ‘Catcher in the Rye,’ calling it ‘heartbreaking and hopeful.’

families of the kids we work with want the same cultural connections their children have. We continue to be forward thinkers, and continue to empower the 13 artists who are in our community daily. They continue to be innovative in how they approach their work to include families. CPH is unique in that our leadership and board are very progressive and allow staff ownership of their work. Without that ownership, the work we’re doing would not happen.

“Pamela’s great talent is connecting the dots between what theatre has to offer as an art form and what our young people need to succeed.

She combines that with a tenacity and persistence it takes to get things done.”

KATIE PIONEERED A NEW LEVEL OF CONFIDENCE. WHAT WILL YOU PIONEER? Through dance, Katie Ly ’18 built friendships, poise and self-assurance. At WRA, we nurture every student’s talents so they can develop the confidence to excel in the world ahead.

Katie is taking all the right steps.

— Kevin Moore, managing director, Cleveland Play House

To find out why Western Reserve Academy has been ranked among the top boarding and day schools in the nation, visit WRA.net or call 330.650.9717.

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WHO TO WATCH IN EDUCATION

Tara Henderson

Teacher, Saint Ignatius High School What others are saying:

Saint Ignatius High School operates by a “special recipe” of lifelong learning and social justice, with an ultimate goal of nurturing its young charges into responsible, open-minded adults. Tara Henderson is happy to be part of that formula, via her work both as a biology teacher and orchestrator of a schoolwide pre-med program.

The comprehensive medical course is Henderson’s particular joy, as it gives students an early opportunity to experience a changing health care environment. — Douglas J. Guth

What are the skills Tara brings to the table?

“First and foremost is her desire to provide students with terrific learning experiences. Her energy in front of the class is palpable, and her connection to students is observable in their positive response to her teaching style.”

What was the genesis of the school’s pre-med program?

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We’r e A kr o n C o m mu ni t y Foundation. You help charitable people achieve their financial goals, and we help them support the causes they love. Our DonorAdvised Funds offer clients the maximum tax benefit and an easy way to engage in everyday p h i l a n t h r o p y . Ou r P l anned Giving options are flexible, so you and your client can craft a tax-smart legacy of giving. Our experienced staff is always here for you with charitable options, local insight and expert service.

The program grew out of a club called the pre-med society. Interest escalated over the years, and we felt like we could grow the club into its own program. It started under the direction of Dr. Michael Anderson of University Hospitals, and we ended up getting a steering committee together made up of 15 to 20 doctors.

How does the program prepare students for a career in medicine?

The curriculum includes honors level and AP courses in chemistry, physics and biology. Extracurricular activities involve guest speakers.

We’ve already had a cardiologist and a veterinarian speak to the boys this year. We’ve done suturing clinics, and teach other techniques like taking someone’s blood pressure. We also have students shadow nurses and doctors to expose them to differ-

ent specialties in the medical field.

What makes this program special or unique?

Students are networking with health care specialists at an early age.

This increases their chance for internships and teaches them in what direction health care is moving.

What interests you about this area of study?

I went to school as a pre-medical professional in biology. I thought I’d pursue medicine myself, but as college went on, the thought of teaching motivated and inspired me. My students now motivate me to always strive to bring biology to life in ways they’ll remember and benefit from long after they leave our walls.

— Jerry DeCarlo, science department chair, Saint Ignatius High School

Five things Recent favorite read: ‘Stiff: The Curious Lives of Human Cadavers’ Role model: Her mother, Kim Henderson. She’s always striving to make other around her better.

Something others might not know: She loves to grow her own food as much as she loves to cook it.

Pets: A dog, two cats, two goats, and some ducks and chickens.

Cleveland hot spot: Cleveland Metroparks Zoo

Empower the Future®

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Dreams are worth the investment.

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Advice from the experts on how to build your business and expand revenue

The Crain’s 52 Fastest-Growing Companies program recognizes the entrepreneurial spirit, innovative business tactics and skyrocketing revenue growth of the fastest-growing companies in Northeast Ohio.

Announced Nov. 9, this year’s Top 10 Crain’s 52 companies are: 1.

2.

3.

4.

5.

CRAIN’S 52 ON THE GROW

Echo Health Inc. Wireless Environment LLC Laudan Properties ExactCare Pharmacy Budget Dumpster

6. Compass Self Storage 7. Global Transport Inc. 8. Keller Williams Realty of Greater Cleveland 9. The SpyGlass Group LLC 10. Technical Assurance Inc.

To that end, we asked several of these companies to share the secret of their success.

Their responses to the question, “How do you keep your company moving in the right direction?” can be found throughout this section.

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Focus on the risk to reap the reward Private companies must carefully assess operations before assigning value

BY LLOYD BELL

U

nlike their public company counterparts, private companies have no way to measure company value due to the lack of a ready

market. The public company stock listings reflect actual transactions, something that a private company is not likely to undertake until the owner is ready to leave the business. Not surprisingly, the way private company

owners estimate their value is by applying a multiple to their earnings. The answer to building value is obviously to grow earnings, right?

Not always. Of the two variables in the simplified value calculation, little

SCT can safeguard your business.

Let us help you protect your company’s greatest asset: its workforce.

SCT President Gail Grueser

SCT Vice President Rob Medlock, fmr. Cleveland Area OSHA Director

Founded in 1999, SCT is a Woman-Owned Business Enterprise that specializes in providing clients with comprehensive Occupational Safety and Health services. SCT earned a spot on the Weatherhead 100 list for 2016, recognizing it as one of the fastest growing businesses in Northeast Ohio.

SCT provides comprehensive OSHA compliance assistance, expert witness services, temporary staffing from our pool of expert safety professionals, BWC drug free safety services, drug testing and program assistance, health screenings, industrial hygiene services, and safety supplies.

Visit sct.us.com/crains-cleveland to Scan the QR Code to sign up for a free phone consultation sign up for SCT’s with one of our safety experts!

Quarterly Newsletter

thought is given to the multiple and how it can be improved. The multiple earned in a sale is a reflection of the perceived investment risk in a specific company, not the risk of investment in all companies within a particular industry or size. That is why it is inaccurate to simply apply an industry average to a specific company.

In order to improve the multiple for a specific company, one must first understand the specifics of the company and find ways to mitigate the investment risk. A company with an updated strategic plan that guides its operations has started down the path toward risk mitigation and therefore value improvement.

Earnings are not just the result of having a superior product or service. They are also Bell the result of company leadership, an organized sales function and strong financial management. Employees and investments in capital or technology also impact earnings. To protect the sustainability of the earnings and reduce the risk of achieving them, owners must assess how they rate in a number of different areas of the business and identify areas for improvement.

By making improvements where the company is weak, leadership reduces risk and increases value without detracting from company profitability. In all likelihood, these changes will also result in improved earnings, thereby amplifying the impact on company value.

At the end of the day, the value of a private company is ethereal and only exists when a transaction occurs. It is far better to take the steps to improve the company’s risk profile before initiating a transaction. Owners will have more control over the value, not the buyer who makes these improvements after the sale is consummated.

Lloyd Bell is director of the Corporate Finance Group at Meaden & Moore.

Contact him at 216-928-5360 or lbell@meadenmoore.com.

Advertising director Nicole Mastrangelo, nmastrangelo@crain.com Managing editor, custom and special projects Amy Ann Stoessel, astoessel@crain.com Reporter Kathy Ames Carr Graphic designer Staci Buck For more information about custom publishing opportunities, please contact Nicole Mastrangelo.

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Investing in workplace safety protocol can boost an operation’s resilience

BY ELIZABETH LUNDBLAD

N

othing is more damaging to a company’s productivity than an injured worker. Not only is a valuable employee taken out of the workforce, but the morale and productivity of other workers suffers as well. These effects are amplified in small business.

Taking a proactive approach to safety is crucial for any growing business.

Safety Controls Technology president and founder Gail Grueser said that being reactive to a potential safety problem has two major side effects.

“First, business comes to a screeching halt until the problem is investigated and resolved,” she said.

“And second, employers found to have been aware of potential safety hazards and who didn’t prevent an incident from occurring could be found to be in violation of OSHA standards.”

OSHA is the Occupational Safety and Health Administration, the United States’ governing body when it comes to protecting worker health and safety.

Safety violations cited by OSHA often result in fines.

“You want to fix the problem before OSHA finds it,” she said. “It’s better to have us at your workplace now, rather than OSHA there later.”

Safety Controls Technology, a Mid-

1

dleburg Heights-based occupational safety and health firm, was recently named to the Weatherhead 100 list for 2016, which is a list of Northeast Ohio’s fastest-growing companies as determined by the Weatherhead School of Management at Case Western Reserve University in Cleveland.

Having spent 20 years as the Cleveland area OSHA director, and more than a decade serving as an OSHA compliance officer, Rob Medlock, current vice president at Safety Controls Technology, has investigated hundreds of workplace fatalities in which the employer has been devastated by the loss, both internally and externally.

“Their reputation is tainted, and then they wake up and say, ‘It’s time to do something.’ Many of them recover, but not all of them do,” he said. “People can get by with violating the standards and having an unsafe workplace just because of fortuitous circumstances, but eventually that’s going to catch up with them.”

Studies say that for every dollar a business invests in workplace safety, the company reaps $3 to $4 dollars in return, he added.

Companies that have a lot of injuries just can’t compete. Medlock said if a company can’t control its losses, it’s not going to be in business very long.

“A proactive safety program is more

CRAIN’S 52 ECHO HEALTH

Revenue 2015: $65.8 million Five-year revenue growth: 1365%

How do you keep your business moving in the right direction?

We have a culture that places employees first, customers second and shareholders last. One of the biggest factors in growing our business is the ability to succeed through failure. We’re not afraid to take risks and break something because we’ll ultimately fix it. Our goal is to simplify the health care payment process for both providers and patients, and believe me, it is tough to figure out. There are so many roadblocks you’d never even dream of.

We started out with three payment modalities, and now we’re up to about eight. We’re very entrepreneurial in our approach, and reward employees even when they fail. Failures actually make you stronger because you’ve tried every approach possible until you get to the top of the pyramid, where your mistakes become fewer and fewer. Then you find the solution.

I bet there are so many people who were probably halfway toward figuring out a solution but gave up midway. We don’t give up.

— William Davis, chairman and CEO, Echo Health Inc.

difficult to document because you can’t record what you prevent from happening, and many have difficulty viewing safety as anything but a cost,” he said. “They don’t see it as ever bringing in revenue.”

Businesses that implement proactive safety plans have a happier workforce that is dedicated and more loyal, which Lundblad often results in fewer turnovers, Medlock said. Companies that have to react to safety problems can slide by for a while, but when an incident occurs, it is often devastating.

“Reactive companies end up having to do the same thing proactive companies do, but they have to do it because they are forced to and are facing large penalties and civil litigation,” he said.

In August 2016, OSHA’s maximum fines increased by 78%, marking the first adjustment since 1990. Serious

violations now have a potential for upwards of $12,000 per violation, and willful or repeated violations can bring a fine of more than $124,000.

Responding to the increased fines, Medlock said OSHA looks at heavy enforcement as a way to accomplish its mission of protecting workers. Since the administration’s resources are being spread thin and cannot reach as many companies, OSHA has to “wave a bigger stick.”

Medlock disagrees with the opinion that OSHA can always find something to cite “just because.”

“OSHA is much more forgiving when you have the fundamental safety components incorporated into your management system,” he said.

Companies that do face heavy OSHA fines are also hit with a public relations nightmare. OSHA’s theory, according to Medlock, is that publicizing companies with poor safety performance encourages others to follow the safety standards. OSHA

sends out a press release for fines above $50,000.

Devoting financial resources to implementing employee training and quality safety programming and policies has both short- and long-term results, all of which impact business growth.

“In the short term, a committed safety culture protects a company from government fines,” Grueser said.

“In the long term, a safe and happy workforce fosters innovation and productivity, which are earmarks of a healthy and thriving business. To me, it just doesn’t make sense not to invest in workplace safety.

“Workers thrive where they are valued, and they’ll contribute to a business they view as one that stands on the side of its employees and not its profit margins.”

Elizabeth Lundblad is the marketing manager at Safety Controls Technology.

Contact her at elundblad@sct.us.com.

DEAL MAKERS NOT DEAL BREAKERS

The Corporate Transactions Attorneys of

Mergers, Acquisitions & Joint Ventures | Closely Held Business Services | Financing Transactions & Loan Workouts | Securities & Corporate Governance | Emerging Company

Cleveland | 216.781.1212 | walterhav.com

Representation | Private Equity & Venture Capital

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‘‘

THERE ARE MANY COMPLEXITIES IN MERGERS AND ACQUISITIONS TRANSACTIONS THAT, IF NOT HANDLED PROPERLY, CAN LEAD TO UNFORTUNATE RESULTS. — Michael D. Makofsky

Proper planning can lead to successful business sale

BY MICHAEL D. MAKOFSKY

O

wners looking to sell their business should begin planning as soon as they can. The following are a few best practices that can lead to a successful transaction.

DETERMINE ITS WORTH An owner needs to know the business’s value before trying to sell. That goes beyond income, revenue, debts and expenses — it is an understanding of what the company is worth on the open market. An owner may overestimate

the value of their company, only to be disappointed with lower offers from potential buyers. An owner should get a professional valuation from a qualified adviser. Many variables factor into a valuation, so it may not be exact.

However, it provides an owner with a clearer view of the state of its business.

With that frame of reference, an owner is more equipped to handle offers.

ASSEMBLE YOUR TEAM Owners often try to sell their business by themselves. After all, they know their company better than any-

one. However, an owner may not understand how to fairly value their company, market it, negotiate legal documents, manage the proceeds or address tax implications.

There are many complexities in mergers and acquisitions transactions that, if not handled properly, Makofsky can lead to unfortunate results.

Further, an owner still needs to operate the business so that it remains attractive

to a potential buyer. An owner should assemble a team of professionals who can guide them through the process.

Experienced investment bankers, accountants, M&A attorneys and financial advisers can help an owner navigate the transaction, work through issues and mitigate risks, all of which can lead to a successful transaction closing.

are interested in. For example, make sure that financial information is complete and correct, intellectual property is properly protected, and that contracts, permits and key arrangements are still in effect. This enhances an owner’s credibility. It also minimizes potential surprises that could lead to a buyer trying to renegotiate a deal or walking away altogether.

MAINTAIN YOUR HOUSE A potential buyer will conduct due diligence on the business. Proper due diligence preparation can help an owner more readily identify information buyers

Michael D. Makofsky is a principal in McCarthy Lebit’s Mergers & Acquisitions and Banking & Finance practices. He can be reached at 216696-1422 or mdm@mccarthylebit.com.

2

CRAIN’S 52 WIRELESS ENVIRONMENT

Revenue 2015: $15.9 million Five-year revenue growth: 829%

How do you keep your business moving in the right direction?

We are devoted to product excellence. Good products that sell themselves are tremendously beneficial to a company. Retailers are less likely to negotiate on price because they see the value if the product is designed right. Our first product — a $20 wireless spotlight — nailed it. It received great reviews on Amazon, which created a platform for our company to grow on. We are constantly challenging ourselves by asking whether this product is the very best it can be. We also put into place in 2014 an operating system that gathers data and sets 90-day and long-term goals, which keeps us accountable. This system has made a huge difference in helping us manage growth. We had a stretch goal of $25 million in sales in 2016, and we’re right on track to hit it. We had just made $7.2 million in sales the year before we implemented the system. — David Levine, president, CEO and co-founder, Wireless Environment LLC

3

CRAIN’S 52 LAUDAN PROPERTIES

Revenue 2015: $13.4 million Five-year revenue growth: 823%

How do you keep your business moving in the right direction?

We value our company culture and the ability to innovate and reinvent ourselves. We hire for attitude and train for skill. We look for someone who has a positive attitude and optimistic outlook and plays well with others. From a culture perspective, our team is self-managing. We have an aggressive bonus program in which a larger percentage of our net income is distributed each quarter to our team. The team works hard to make sure each employee is fulfilling the standards. We also focus on reinvention. We set a goal in 2008 to be a property preservation company, but at the time, banks and servicers were looking for inspection companies. We developed a strategy to be both. We now are a full home rehab company that works with large investors, banks and servicers. — Kevin Weidinger, president, CEO and founder, Laudan Properties

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December 5, 2016 S5

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‘‘

‘‘

TOO MUCH OR TOO LITTLE INFORMATION CAN DELAY DECISIONS OR EVEN TERMINATE WHAT COULD HAVE BEEN A VERY PROFITABLE TRANSACTION. — T. Ted Motheral

Leveraging board involvement in the M&A process Establish clear objectives to ensure open communication

BY T. TED MOTHERAL

I

t happens over and over again.

Companies get close to making an acquisition, but then there are all sorts of costly delays and complications because the company’s board of directors is raising concerns or did not have the information it needed, when it needed it, to make an informed decision on the transaction. Too often, company leadership and board members do not communicate effectively when it comes to consummating a merger or an acquisition.

Ensuring good communications and expedited decision-making happens

long before a deal is brought to the table. Companies that have identified mergers and acquisitions as part of their overall growth initiatives need to develop strategies before the first deal is ever evaluated to make sure goals are aligned and expectations are managed. Otherwise, Motheral boards are often forced to make very reactive decisions without having the information they ultimately need.

Too much or too little information can delay decisions or even terminate what could have been a very profitable

transaction.

The following are tips to keep in mind to effectively involve your board of directors in the M&A process: Develop written policies for identifying and evaluating potential deals to ensure that management and the board agree on how deals will be sourced, what factors will be weighed, what questions to ask of prospects, and how prospective acquisitions will fit into the overall corporate structure and strategy. n Recruit board members with pertinent M&A experience so they can guide the board in asking the right n

questions and make timely decisions.

Develop a list of questions that will be consistently asked when evaluating all prospects relative to projected income streams, potential risks and liabilities, breakdown of responsibilities and liabilities between the parties, and potential issues arising from the integration of the new facility or assets. n Create a formal process for learning from previous acquisitions and attempted acquisitions so that mistakes are not repeated. n Clearly define responsibilities of management and the board during the M&A process. Some boards are too involved, restricting management from doing its job. Others are too n

removed and only brought into the process shortly before the close of the transaction.

Board members today have more fiduciary responsibilities and are exposed to the potential for heightened scrutiny in terms of liability. It is in the best personal interests of the board members, as well as the best interests of the company, that boards have the right information at the right time to make the most fiscally responsible decisions.

T. Ted Motheral is a partner in the Corporate Transactions Group of the Cleveland-based law firm of Walter | Haverfield LLP. Please contact him at 216-928-2967 or tmotheral@walterhav.com.

REAL PASSION. REAL PARTNERS. Our Management Consulting Group combines business and financial acumen with deep industry experience to help business leaders and their teams make tangible and sustainable business improvements. From business strategy to operational alignment to technology transformation, we bring perspective and resources to achieve real results.

Whenever you’re ready for a tried-and-true partner to help improve your business, we’d welcome the opportunity to put our passion to work for you.

To learn more, call Jim Boland, MBA at 216.774.1211 or visit us online at cohenconsulting.com.

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ACA on life support post-election

BY JOSEPH P. YONADI JR.

W

e are one month removed from a contentious presidential election that, as a result, has America awaiting a transition that will culminate in the Republican Party effectively taking a majority in all three branches of government. This does not bode well for the Obama Administration’s Patient Protection and Affordable Care Act as health care consumers continue to endure the growing pains

4

associated with the administration’s crowning legislative achievement. For years since the ACA went into effect, many health care consumers have been forced to choose the best of the worst health plans within the ACA’s exchange due to cost pressures on both consumers and insurance providers.

ACA’S RISING COSTS A number of factors have contributed to the sharp escalation in health care costs. One key factor is the widely reported unbalanced risk pool in the

CRAIN’S 52 EXACTCARE PHARMACY

Revenue 2015: $121.8 million Five-year revenue growth: 792%

ACA BASIC REQUIREMENTS NO HELP The inherent costs associated with ensuring that every citizen has health care coverage, and such coverage provides a minimum level of health care, has also contributed to the health insurer exodus and rising costs. Mandates that require group health plans sold inside and outside the ACA exchanges include an essential health benefits package, limits on cost-sharing and specified actuarial levels of coverage have also influenced those trends.

The ACA requires employees to obtain minimum essential coverage either through an employer plan or through an ACA exchange. Employers with an average of 50 full-time employees

How do you keep your business moving in the right direction?

Our No. 1 driver is that we have a patient-first mentality, and that permeates through our company culture, beginning with the top down. We talk about it nonstop in everything we do. We also promote a culture of innovation. We don’t just sit back and wait for opportunities to come to us. Because we developed a new business model, we couldn’t really find anything off the shelf.

My (chief information officer) and I went out and scoured the industry to see what technology was available to help us scale up as we started to quickly grow. We couldn’t find anything, so we built it. We spent two to three years building what we believe is an industry-leading technology. We customized our software to handle workflow and package medications. We have the tools in place to ensure patient safety. We’ve also hired some amazing talent who have a ton of knowledge about the pharmaceutical and health care industries. — Dale M. Wollschleger, president and CEO, ExactCare Pharmacy

Trusted Advisors. Respected Advocates.

individual market. According to such reports, only 28% of ACA exchange enrollees were between the ages 18 to 34. If this trend continues, this age group won’t have enough enrollees to absorb the higher costs associated with the older age group enrollees.

To further complicate matters Aetna, UnitedHealth Group and Humana announced in late summer they were significantly downsizing their ACA capabilities, which will result in one-third of all counties in the U.S. left with only one health insurer. Couple that news with the Obama administration’s announcement in October stating that medical premiums for the ACA’s benchmark health plans will increase on average by 25%, health care consumers must feel as if they are in a vise that continues to tighten its grip on their wallets.

SM

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be subject to the medical coverage requirements noted above, and should seek counsel when making such a determination.

NEW ACA REGULATORY REQUIREMENTS IN 2017 Adding to its complexity and layering on additional costs to comply even more than six years after its enactment, the ACA continues to subject group health plans to new regulatory requirements.

Beginning on Jan. 1, 2017, group health plans that receive funding from the U.S. Department of Health and Human Services will be required to comply with the ACA nondiscrimination rules, which prohibits discrimination on the basis of sex, age, race, color, national origin and disability.

The ACA’s information reporting compliance requirements continue in 2017; however, as this article went to press, the Internal Revenue Service had refrained from granting further transitional relief for 2017. The IRS hinted it would not look at information reporting errors as a source of revenue.

Only time will tell if the Republican majority will pull the plug on the ACA, or choose to breathe life into it in order to salvage the goal of ensuring a minimum level of health care coverage for every citizen.

Joseph P. Yonadi Jr. is a partner in Benesch Law’s Labor and Employment Practice Group who specializes in employee benefit and executive compensation matters. Contact him at 216-363-4493 or jyonadi@beneschlaw.com.

Savvy ecommerce experience opens door for new B2B relationships

BY KATHERINE HAUBRICH

At McCarthy Lebit, we know business.

or more are required to provide health insurance coverage to at least 95% of their eligible workforce and to their fulltime employees who work at least 30 hours per week.

An essential health benefits package consists of health care services such as ambulatory patient services; emergency services; hospitalization; mater- Yonadi nity and newborn care; mental health and substance use disorder services; and prescription drugs, in addition to other services.

There are four tiers of coverage that an essential health benefits package may provide: bronze (60%), silver (70%), gold (80%) and platinum (90%). The percentage equals the total amount of health care expenses that a plan must cover. For example, a gold plan will pay for at least 80% of the health care expenses. The consumer pays out of pocket the remaining 20% of the cost of coverage through a combination of deductibles, copayments or coinsurance.

Group health plans are also prohibited from placing lifetime and annual limits on essential health benefits. In addition, the ACA imposes annual limits for cost-sharing such as deductibles, coinsurance and copayments with respect to essential health benefits. For the 2017 plan year, the cost-sharing limits for group health plans are $7,150 for individuals and $14,300 for families.

Large employers who sponsor selfinsured group health plans may not

ust think of everything you purchase, or could purchase, online — a house, pets, clothing, food, toys, a boat or sailing lessons for your new boat. The list is endless.

Not surprisingly, the ecommerce platform, which originated in the business-to-consumer sphere, has spread to the business-to-business marketplace.

Forrester Research predicts by 2020, more than 12%, or $1.1 trillion, of all transactions between companies will be managed through digital channels.

MFS Supply is a Solon-based national distributor of property preservation materials, HVAC, cabinetry, appliances, countertops and more. B2B organizations like MFS Supply need to start preparing their ecommerce launch now to support the online marketplace that customers are already adapting to

in the B2C sphere.

In 2015, Amazon sold more than 480 million products and generated $105 billion in revenue, making it the most successful ecommerce company in history. This is a website with which all of our customers — property preservation contractors, multifamily property managers, fix and flippers, and real estate agents Haubrich — are familiar. Because of this exposure, they will expect the same levels of searchability, availability, usability and functionality when visiting MFS Supply’s website.

Many wholesalers and distributors are turning toward Amazon Business as an alternative, in a “if you can’t beat them, join them� mentality. B2B companies should be investing their resources into sculpting their own

ecommerce platform to control their company image and level of customer service.

Certainly, this is a huge undertaking.

Companies will need to create a userfriendly interface, excellent search features, an eye-catching design, live product feeds, integrated shipping ETAs and costs, product filters, browsing options and much more.

By laying the groundwork now, and building Electronic Data Interchange (EDI) and Application Program Interface (API) bridges with your vendors, companies will be able to reap the benefits from both offering their customers the ecommerce platform they demand, as well as being prepared for future growth in online marketplaces and omnichannel solutions.

Katherine Haubrich is senior project manager at MFS Supply. Contact her at 800-607-0541, ext. 5070, or khaubrich@mfssupply.com.

ROADMAP

SPONSORED CONTENT

December 5, 2016 S7

TO GROWTH

Keys to managing growth Develop strategy that accommodates surge in revenue

to department and individual performance goals.

step back to look at the organization’s trajectory and confirm the desired destination. Then communicate that vision along with what’s required to get there.

PROCESS AND PROCEDURE Ultimately, strategy and planning are supported by day-to-day business processes. Focus on what will increase enterprise value by employing a framework that connects financial value to operational processes. This exercise will help identify inefficiencies, internal control weaknesses and pockets of “institutionalized knowledge” that create risk as the business scales.

Get ahead of these challenges by evaluating, documenting and optimizing the core business processes that deliver the most value and need improvement.

BY JIM BOLAND

W

hat would happen if your company suddenly had to deliver five or even 10 times what it currently delivers? Is your team and product up to the task?

Business leaders are almost universally focused on growth. In a recent survey by Strategy&, a global strategy consulting firm, 94% of executives polled listed growth as a top strategic priority. But what happens when the business really takes off?

Many executives are so focused on growth that they don’t fully consider what comes with revenues that are two times, five times or even 10 times current levels.

Growth introduces added complexities, which requires robust supporting capabilities. As geographies, customers, channels, products and employee base increase, new process and technology requirements arise.

Quite quickly, a business that has been focused on aspirational growth and front-line excellence can be overwhelmed by operational growth and complexity.

Think about how the following activities may change:

n Innovation and sales/marketing.

One product line or customer segment used to be enough. New customers may have unique product/service requirements. n Sourcing. Product or service offerings are expanding and must be delivered across an increasingly

5

intricate supply chain. n Human capital management. Recruiting, developing and retaining the talent needed to capitalize on growth requires efficient organizational design and competitive compensation. n Customer service. Geographic dispersion creates a longer customer support window that must be tracked to help ensure great service and customer retention. n Order capture and fulfillment.

New customers may have digital expectations or automated order processing requirements. n Mountains of transactional data.

More data requires greater technical processing power and a strategy around structuring, securing and maintaining these digital assets.

Experiencing significant growth is often a critical turning point. If key issues haven’t been proactively addressed, an organization can crack under the escalating manual workload and employee frustration. Act too late, and building scalable processes and systems can be much more complicated and costly.

So what’s the best way to be prepared for an accelerating business? These concepts can help:

STRATEGY AND PLANNING Taking a more formal approach to defining growth targets and the organizational structure required to achieve those goals is an excellent path for growth. Comprehensively review the market and customers’ needs, and align the organization’s capabilities to deliver on that value proposition. Are the business segments aligned to the same Boland shared vision/goals, with investment capital allocated accordingly? If not, it is critical to get leadership on the same page. Invest the time in a strategy session to unite leadership around a shared vision, and draft plans that hold the management team accountable.

The key to develop your strategy is to cascade corporate-level objectives

PEOPLE AND CULTURE For many small- to medium-sized businesses, formalized processes may appear to conflict with the entrepreneurial culture of getting things done. However, autonomy and flexibility don’t have to be stifled. Be cognizant of the company’s culture.

Provide sufficient guidance to clarify expectations and encourage consistent delivery without being overly

prescriptive — while it may seem excessive today, it will pay off as the business scales. If done proactively, formalizing processes can preserve a flexible culture by fostering ownership while driving accountability to deliver the strategic plan.

TECHNOLOGY AND DATA Develop a thoughtful plan for how technology can help realize strategic goals. First, assess current technology capabilities and data availability/ accuracy. Prioritize technical gaps and improvement projects based on strategic, financial and customer objectives. When a new application is needed, use a similar approach to capture requirements based on strategic and financial value to find the best fit. Finally, review data management practices so the growing number of business transactions generates reliable information and reports to support timely management decisions.

Growth offers many opportunities and challenges. By preparing to face these challenges today, the business will be well positioned to take advantage of these opportunities in the future.

Jim Boland, MBA, is partner in-charge of Cohen & Co.’s Management Consulting Practice. Contact Jim at jboland@cohenconsulting.com.

LEADERSHIP AND VISION Don’t let the “urgent” obstruct the “important.” Management may feel overwhelmed by the routine crises of a growing business and struggle to shift their organizations into the next phase.

Leadership will benefit from taking a

CRAIN’S 52 BUDGET DUMPSTER

Revenue 2015: $29.4 million Five-year revenue growth: 713%

How do you keep your business moving in the right direction?

It comes down to five key points. The first is culture. It’s the bedrock on which everything is built. We rely on traditional values and being kind. Everyone here works hard. The second is compensation. It’s super important to pay people above a fair level, which helps us attract and retain talent. It shows people our gratitude.

Third is top-notch customer service, which is one of our main drivers of business. Next, we monitor our competition. It motivates my partner and I to continue innovating. And finally, we are always making sure the right technology is in place to support that innovation.

We recently launched a proprietary software application that integrates several pieces of data into one central hub, so employees don’t have to jump through four different computer monitors when taking a customer call. We can deliver accurate information more quickly. — John Fenn, co-founder Budget Dumpster

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CLUBS

Progressive Field renovations had reached the home stretch, a Tribe Rewards kiosk was unveiled on the main concourse. Salcer said that led to a dramatic increase in members redeeming their points.

“We used to do it all online,” Salcer said. “Putting that kiosk there has been great. They can see products and try stuff on.”

CONTINUED FROM PAGE 1 “At the gate and beyond,” PricewaterhouseCoopers’ annual report on the North American sports industry, said almost 50% of major pro sports organizations offer fans a rewards program, an increase of almost 8% from the firm’s 2015 study. Of the teams that have such programs, the most popular perks offered to season-ticket holders are retail (80% of the teams), parking (40%), and food and beverage (35%).

The Browns, Cavs and Indians are among the growing list of clubs that take the rewards a step further by offering experiences — many of which involve access to players, coaches and team executives — that are exclusive to season-ticket holders.

“The internal objective is to deepen the engagement and ensure that (season-ticket) renewals stay at a healthy level, and where possible you look to drive incremental business and influence the behavior of fans as to when they engage and how they engage,” said Adam Jones, the editor of PwC’s annual report.

‘Year-round’ membership The Cavs launched Wine & Gold United in 2013 — a year before LeBron James made his triumphant return.

Once James was back in the fold, the Cavs split WGU into three tiers, with the most loyal season-ticket holders (six-plus years) earning “Legend” status. Season-ticket holders who have been with the franchise for three to five years are All-Stars, and those in their first or second year of membership are Rising Stars.

The more loyal you are, the better the perks.

On Nov. 30, the Legends had the chance to bowl with J.R. Smith at Punch Bowl Social. The group also can choose from such experiences as an annual holiday party, a day at Cedar Point and a tour of Cleveland Clinic Courts.

“You are truly a member of the organization all year-round,” Widder said. “Your investment includes your ticket, but so much more. We wanted to make it a more holistic experience.”

Widder said such membership clubs are modeled after European soccer teams. In addition to similar benefits, the NBA club names — Wine & Gold United, Rip City United (the Portland Trail Blazers’ club), Jazz 44 United (Utah Jazz), Cap City Kingdom (Sacramento Kings), DC 12

TEAM NEO CONTINUED FROM PAGE 1 If a site selector tries to match a list of criteria important to the client — say the client is looking for an existing industrial building with a 50,000-square-foot shop floor and 50,000 square feet of warehouse space close to a freeway — against these databases and he or she passes over a qualified property because the web listing (but not the property itself ) is missing one or two of those criteria, a community won’t be considered for the expansion.

And the more small websites the consultant has to wade through in a particular region, the more likely he or she is to miss a qualified site.

James Robey, director of regional economic and planning services at the W.E. Upjohn Institute for Employment Research in Kalamazoo, Mich., and a former Team NEO re-

‘Unique’ content

Cavs owner Dan Gilbert speaks at the Wine & Gold United’s recent membership meeting. (Contributed photo)

How the Cavs’ membership club works The Cavs’ Wine & Gold United membership program was broken into three tiers — Legend (six-plus years of tenure), All-Star (3-5 years) and Rising Star (1-2 years) in 2014. Each club has the following membership perks:

the ability to text a Cavs membership representative can do so via the app.

Game-day Rewards

WINE

GOLD

JJBowling

night party JJDay at Cedar Point JJTour of Cleveland Clinic Courts

JJWGU

JJHoliday

JJMovie

(Washington Wizards) — sound like soccer organizations.

The Cavs’ All-Stars and Rising Stars aren’t left out, either. The groups can choose such experiences as a chalk talk (Cavs general manager David Griffin has taken part in two of the four this year, and there are two more on the schedule), a movie night at The Q, happy hour or an away game watch party.

The Cavs capped their 2016-17 sea-

son-ticket base at 15,000 full-season equivalents, Widder said. There are 7,700 Wine & Gold United members.

“We’ll evaluate if we want to expand it next year,” Widder said.

The post-championship season is the first in which WGU member benefits are 100% digital, with a membership portal available on the Cavs’ app.

Members looking for team-shop discounts, game-night seat upgrades and

The Indians, like the Cavs, were ahead of many of their sports industry peers in introducing a rewards system for season-ticket holders.

Tribe Rewards — in which members earn points based on how many games they purchase, how long they’ve been a season-ticket holder and even paying a bill in full (rather than opting for a payment plan) — was launched in 2012.

“When it started, it was more to get people to purchase more with the Cleveland Indians,” said Tim Salcer, the Tribe’s senior director of ticket sales and service. “Now, we look at it more like they’re already spending and committing, so we look at it as a way to add benefits.

“I think it’s all about the rewarding,” Salcer added. “They’ve already committed to us. There shouldn’t be any additional hoops for them to jump through.”

The Indians’ 9,000-plus season-ticket holders can redeem points for autographed items, memorabilia and tickets, and get VIP access to such events as Tribe Fest. Each summer, the club also holds a postgame autograph session for season-ticket holders in which every player on the roster is made available.

In 2015, when the first phase of

search director, lauded Team NEO’s effort at consolidation.

“You have to be proactive,” he said.

“Having the scale (of a web database that covers 18 counties) is incredibly important,” Robey added.

“Available buildings and even dirt are hard to find. The ability to search at a single point of contact is really important.”

Robert Garber, a principal at Cresco Real Estate, an Independence-based commercial and industrial real estate brokerage, agreed.

“Nobody is really tracking in a really good fashion, in one database, what’s out there, especially on the outskirts,” Garber said.

If a site selector were to ask Garber for possible sites in Cuyahoga County or adjacent communities like Twinsburg or Macedonia, he said he could be confident of finding 19 or 20 sites that met the consultant’s criteria.

“But if somebody came into town and said, ‘I could (locate the operation) in Cuyahoga County or Summit

County or Trumbull County,’ there is no way I could get the information from one source,” Garber said.

He added that too often, existing database listings lack important information, such as what the property’s zoning is, or whether a company would have to pay to run a natural gas line to a piece of vacant land.

Those details might be important to a business making a location decision.

“The site thing is really important for Ashtabula County’s future competitiveness,” said Don Iannone, CEO of the Growth Partnership for Ashtabula County, that county’s economic development arm. “The whole issue for rural Ohio is making sure you have basic information.”

The fragmentation also makes it hard for real estate brokers, who submit their available properties to the website inventories, to make sure their listings are showing up with complete information.

“Here I am, at any one point in time I may have 500 to 600 active list-

ings,” said David Browning, Cleveland managing director of the CBRE brokerage.

“There are probably a dozen different websites that I need to be thinking about,” he said. “And what happens when the information changes and I end up not controlling what’s out there on the internet about some of my properties? It’s a crazy, dysfunctional situation.”

A slide show being used by Team NEO succinctly makes the case for getting every organization in the region with a website on the page to participate.

“We are losing opportunities and/ or not being considered for projects due to incomplete information and inadequate site inventory,” one slide states. “We can develop a competitive advantage through the strategic assembly of industrial sites.”

JobsOhio is thinking along the same lines.

It, too, has a site inventory on its website. Its database gets listings

JJPrice

savings on a per-game ticket basis JJPlayoff priority JJTeam-shop discounts: 20% for Legends, 15% for All-Stars and 10% for Rising Stars JJAnnual Wine & Gold appreciation party JJAnnual members meeting ADDITIONAL PERKS Legends and All-Stars also get their names on the court and access to select concert presales, and Legends’ tickets are loaded with food, beverage and merchandise credits. Legends also get to choose from five Wine and Gold experience options, while All-Stars can select three Gold experiences and Rising Stars can pick one Gold experience. The options include:

Monsters game night night at The Q JJChalk talk JJAway game watch party JJHappy hour

Season-ticket clubs are much different in the NFL, which plays fewer games and has season-ticket bases that are significantly larger than those in other sports.

The Browns have more than 55,000 season-ticket holders, which makes it more difficult to offer exclusive appearances that include a large share of their most loyal customers.

Taylor Laurer, the team’s director of membership services, said the NFL made the shift to a season-ticket membership model a few years ago. Any NFL season-ticket holder has the opportunity to sign up for such perks as free RedZone on his or her mobile device, free Game Pass (the league’s on-demand service) and merchandise discounts.

The Browns also offer such team-specific benefits as pregame field passes, the chance to hold the flag during the national anthem and concession discounts. The more exclusive experiences — such as lunch with head coach Hue Jackson, or gatherings with players and/or alumni — are offered via sweepstakes, with season-ticket holders automatically entered any time they swipe their membership card at a game or event.

The two-year renovation of FirstEnergy Stadium included the addition of four premium clubs that are available to season-ticket holders, depending on the location of the seats they purchase.

“The fan experience at the stadium is something that we really drive home and is one of the top organizational goals and missions,” said Laurer, who spent a few years in a similar role with the Cavs. “Really, the majority of the fans who come to our games are season-ticket holders.”

It’s that base — each team’s most loyal customers — to which organizations must cater, especially now, when the at-home viewing experience has never been better.

“Getting down to the field pre- and postgame, events outside of game day, getting to interact with the organization both on the player and team side — that’s all unique content that sports as an industry can deliver,” said Jones, PwC’s editor. from about 2,000 sources, said Kristi Clouse, JobsOhio’s executive director of operations. Those listings come from real estate brokers, utility companies and economic development organizations, including Team NEO, which is one of six regional partners in JobsOhio’s network.

Klouse said JobsOhio has contracted with GIS Planning Inc., a San Francisco database software firm, to use its software for JobsOhio’s property inventory. Local economic development organizations will be able to have what she described as a “local viewer” on their websites. The cost of that will be paid for by JobsOhio.

Christine Nelson, Team NEO vice president of project management and site selection, said Team NEO will be the administrator of the site inventory for Northeast Ohio.

“As such, we will work with the communities to ensure quality data and submit appropriate properties for site selection opportunities,” she said.

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REAL ESTATE

New Oatey HQ is a huge problem-solver

The newly opened Oatey headquarters is designed for energy efficiency, and bioswales capture storm runoff to avoid overloading the sewers. (Tim Harrison for Crain’s)

STAN BULLARD sbullard@crain.com @CrainRltywriter

As Oatey, the Cleveland-based plumbing products manufacturer, put together its new corporate headquarters on the city’s far West Side, it kept the flow of water and its products in mind but also focused on a different kind of flow.

Enhancing the flow of communications to ease collaboration and spur creativity was the purpose of the building that drove its design. Previously, the 130 workers at the new office building occupied work spaces at two separate factories and a distribution center in the city.

“When they had to meet to discuss an idea or solve a problem, they had to get on a calendar for a conference room we did not have,” said Ron Compesino, an Oatey vice president who served as the owner’s representative working with architects from Vocon and contractors associated with Donley Inc. on the 47,000-square-foot building.

The result is a building with a two-story lobby that connects to a cafe-style lunch room that doubles as a meeting space on the first floor. Stairs lead to a second floor with another large space outfitted with comfortable furniture that is located between executive offices and other operations to support additional contact. The north end of the building can be closed off from offices on the other end to allow meetings with large groups of customers and evening events.

Throughout the building, there are many floor-to-ceiling windows facing the forested valley of the Rocky River Reservation of the Cleveland Metroparks. To take advantage of the windows, the building’s floors have tall ceilings of more than 13 feet.

Most of the ceilings expose ductwork and mechanicals in an industrial-style design that John McMillan, Oatey CEO, said recalls the company’s manufacturing basis.

“There is a natural flow of collabo-

Jane Lacy, an advanced new product introduction engineer at Oatey, talks to a coworker in the open workspace on the first floor.

“There is a natural flow of collaboration and communication here that is very different from our earlier buildings. There’s a lot of natural light to foster creativity.”

— John McMillan, Oatey CEO

Eric Snyder, Oatey’s senior global sourcing manager, works while standing. “I like the desk being up because it keeps me active,” Snyder said.

ration and communication here that is very different from our earlier buildings,” McMillan said. “There’s a lot of natural light to foster creativity.”

In work areas, a floating ceiling — Oatey calls it a cloud — hangs nine feet over open offices to control

noise. There are nine phone rooms where associates can duck in for a call that requires privacy.

“Now communication happens naturally, between people’s desks,” Compesino said. “They can gather together to discuss an image or design. It’s faster, and with less opportunity for error.”

McMillan said the company weighed the benefits of improving collaboration against something it values as a manufacturer: the ability for associates to walk directly into the factory to see how something is done.

He said the company is putting systems in place to keep the connection with the factory floor intact.

Accounts receivable specialist Adnan Halasa works out in the middle of the day in the company workout room.

It is doing that internally by not calling the 20600 Emerald Parkway building its world headquarters, although it serves as such.

“It is a customer service center,” McMillan said, to keep in mind its consumers, not only in the marketplace but within the company’s different manufacturing and distribution units.

The long, low two-story building is also “designed to hug the landscape,” said Julie Trott, a Vocon project director who oversaw the Oatey job.

The contemporary design uses a color scheme of neutral tans and grays with red, the color of the Oatey brand, to provide accents.

Handling water is key to Oatey’s products, and that is reflected in the site’s design. Rather than underground storm sewers, rain runoff from the parking lot is carried by bioswales, above-ground water channels similar to French drains.

The storm water goes into a pond, which allows the water to naturally seep into the ground.

A traditional drain would have put road salt from the parking lot directly into the nearby Rocky River, McMillan said. Rain from the building’s roof goes into a cistern, where

it is stored for reuse in the building’s lavatories.

Those techniques are the kinds of elements that the Northeast Ohio Regional Sewer District is promoting to reduce new drainage fees. The building also is designed for energy efficiency; it uses locally sourced building materials and other techniques in hopes of landing a gold rating under Leadership in Energy and Environmental Design, or LEED, standards.

One of Compesino’s tasks was to work with contractors to ensure they used Oatey products throughout the project, from new sewer lines to roof drains. Many Oatey products are not visible because they seal threads on pipes or join plastic pipe, McMillan said, but others can be pointed out on building tours.

“We had a lot of fun with that,” McMillan said.

The new building, whose cost the private company would not disclose, also is designed to aid recruiting by showing Oatey values its workers, Compesino said.

“If was difficult, if not impossible, to land a candidate that was also interviewing at some of the newer spaces in town,” Compesino said.

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BUSINESS OF LIFE

Source Lunch It’s been a very busy year for Jennifer Kramer.

As senior communications manager for Destination Cleveland, the regional convention and visitors bureau, Kramer was responsible for working with local media, so she was the person local reporters and broadcasters turned to for help developing stories before and during the Republican National Convention in July.

Actually, for the last two years the John Carroll University graduate and many of her Destination Cleveland colleagues wore two hats. In addition to her job with the convention and visitors bureau, Kramer filled the same role for the Cleveland 2016 Host Committee, which managed local planning for the convention.

In addition, she faced two other major media circuses in 2016 — the Cavaliers winning the NBA championship and the Indians making it to the World Series.

And the pace hasn’t slowed much as the successful convention has amped up media interest in the social, culinary and cultural sights and sounds of Northeast Ohio. — Jay Miller

How did you and your Destination Cleveland colleagues survive the convention?

We didn’t sleep much. We were running a lot. I could tell you it was a blur, but I remember so many things vividly. There were wonderful moments. I was always running to appointments with media. Outside media wanted to talk about the convention, but for me it was an opportunity to talk about Cleveland.

But I remember a story headline in USA Today, I think, it said, “People prepared for a riot, but in Cleveland they got a block party.”

One of my favorite parts of the convention was one evening I was walking around Public Square with my parents and there were people at the speaker’s platform exercising their First Amendment rights, and across the quadrant there were the police and they were talking to some people who were blowing bubbles.

“I love talking about the new stuff, but I love the old stuff, the baseball history, the old buildings. My parents met at the Heinen’s supermarket on Green Road in South Euclid, and now we have a Heinen’s downtown to talk about.” people appreciate Cleveland.

I love talking about the new stuff, but I love the old stuff, the baseball history, the old buildings. My parents met at the Heinen’s supermarket on Green Road in South Euclid, and now we have a Heinen’s downtown to talk about.

What was the reaction around the office when the Republican National Committee announced that its 2016 convention was coming to Cleveland?

We were ready for it. I think the reaction was, “We’re hosting the thing and we’re going to knock it out of the park.”

This year you had not only the convention but the Cavaliers’ championship festivities and the World Series. What did that mean?

Any time we have big events like those, with all those sportscasters in town, it gives us a chance to tell Cleveland’s story. They see the vibrancy downtown.

Your job focuses on working with local media. What’s the goal there?

My goal is to help locals familiarize themselves with the area. When I interviewed at Destination Cleveland, I was more interested in working with local media than national media because it’s so important to me to have local

As your organization has evolved from the Convention and Visitors Bureau of Greater Cleveland to Destination Cleveland and especially since your boss, David Gilbert, took over in 2011, the organization has really focused on improving the image of the region, which had been negative for so

Jennifer Kramer

long. What did the convention do for that?

The convention turbocharged it. It was happening for maybe about a year before the convention, in terms of the accolades we were getting from different of publications. Like those lists, “places you had to visit in 2015.” Cleveland had never made those before.

Now, it’s no longer a question of people having a negative perception of Cleveland. When I came here in 2013, it was a great challenge to come in and try to change that perception.

One day during the convention, a colleague and I were walking through the convention center, where all the visiting media was, and we were following behind a couple writers and one of them said, “blah, blah, blah, on the lakefront.” He was complimenting the lakefront! We have a lakefront, and people saw it, they get it now.

They’re seeing a different side of the city they didn’t know about.

For us, that means people are open to knowing more about what the region has to offer, we just have to find better ways to talk about it. I’m excited to see what else the community can do together.

So what do you do next year?

Next year I’d like to focus on getting Clevelanders out, exploring their hometown. I’d also like to help them understand the importance of tourism, what it mean if you’re in a group or the board member of an association that can bring a meeting here. Nationally, 32% of new residents travel to their next community first as a visitor. It’s a big deal.

Tourism

Five Things: FAVORITE CLEVELAND RESTAURANT Prosperity Social Club

BOOK YOU’RE READING “The Boys in the Boat: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics,” by Daniel James Brown

FAVORITE SPOT IN NORTHEAST OHIO Rocky River Reservation. It's the place where I run, hike, ride my bike, golf, take pictures, think and recharge.

Not much beats it.

DRIVING AROUND ACCOMPANIMENT I’m a podcast junkie and I listen to them whenever I’m in the car — top three are the “West Wing Weekly,” “NPR Politics” and “This American Life.”

ROLE MODEL My parents. They are a source of endless support, laughter and love, and they share these things effortlessly with everyone they meet. They’re a hard act to follow and undoubtedly the best role models a girl could ask for.

Lunch Spot Pura Vida 170 Euclid Avenue Cleveland puravidabybrandt.com

The meal

“Simple” salad with salmon and the pv BLT

The vibe

A view, through the floor-to-ceiling glass curtain wall, of the revamped Public Square.

The bill

$ 33.20, plus tip

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Benjamin Light has been named Laurel School’s new Director of Advancement where his extensive knowledge of the corporate and philanthropic landscape will be put to good use while cultivating and engaging donors of all giving levels. He looks forward to working with all of Laurel’s constituencies to further the mission of the school. Most recently, Mr. Light held the position of Chief Operating Officer at The Gathering Place, where he worked for the last 12 years.

LAW

Squire Patton Boggs Squire Patton Boggs has announced Leah Brownlee has re-joined the firm as Of Counsel in the Global Corporate Practice. She most recently served as Executive Vice President of Compliance & Operations and Corporate Secretary at Cleveland BioLabs, a NASDAQ-listed biotechnology company. With a focus on the life sciences industry and technology sectors, Leah brings general counsel skill sets to the firm including corporate, securities, financing, governance, contracting, IP and licensing experience.

For more information or questions regarding advertising in this section, please call Lynn Calcaterra at 216-771-5276 or email: lcalcaterra@crain.com

LAW

Frantz Ward announces that Megan E. Bennett has joined as an Associate. Megan received her J.D., summa cum laude, from Cleveland-Marshall College of Law, where she was an Academic Excellence Fellow, member of the Law Review, and received the Law Justice Scholarship. During law school, Megan served as Judicial Extern to the Honorable Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio and also served as law clerk for the Cuyahoga County Prosecutor’s Office.

LAW

Brittany Brantley Associate Attorney

Joseph P. Guenther

Fisher Phillips

Associate

As associate attorney, Brantley will represent employers in a wide variety of labor and employment law matters, including business litigation and employment discrimination. Previously, she was an associate attorney at Frantz Ward LLP and a judicial extern for Judge Nora Barry Fischer of the United States District Court for the Western District of Pennsylvania. Brantley earned a J.D. degree from the University of Notre Dame Law School and a B.A. degree from the University of Cincinnati.

Frantz Ward LLP Frantz Ward announces that Joseph P. Guenther has joined as an Associate. Joe received his J.D., cum laude, from the University of Notre Dame Law School, where he served in the Notre Dame Community Development Clinic as a Certified Student Legal Intern. Also during law school, Joe worked in the Defense Service Office for the U.S. Navy Judge Advocate General’s Corps in Pensacola, FL. Joe received his B.A. in Economics and Political Science, summa cum laude, from The Ohio State University.

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CRAIN’S CLEVELAND BUSINESS

D E C E M B E R 5 - 11, 2 016 |

METRO CONTINUED FROM PAGE 1 “People have confidence now (to say) ‘Yeah, this is a good community to invest in. I want to open my business here because there’s 6,000 employees at MetroHealth,’ � Siegel said.

Growing system In 2011, experts predicted that MetroHealth would end 2015 more than $40 million in the red. Despite the bleak forecast, MetroHealth ended 2015 with nearly $30 million in operating income, and Dr. Akram Boutros, MetroHealth’s president and CEO, said he expects to see positive cash margins again at the end of 2016.

Today, MetroHealth touts that nearly everyone in Cuyahoga County is within a 10-minute drive of its care. “They’ve had a clear strategy of moving care into the community,�

Siegel said.

This, he said, brings more people through their doors, including those with insurance, and allows MetroHealth to provide care at a lower cost than in a hospital.

This year, MetroHealth opened three new emergency departments, bringing its total to four. The system now has 24 community health centers, four clinics in Discount Drug Mart stores, five MetroExpressCare locations and nine pharmacies. “We are evolving our delivery system from a complex, fragmented, costly system with significant variation in quality of care, to a well-organized and managed health service delivery system so that people get the care they need, when they need it, in ways that are user-friendly, achieve desired results and provide significant value for the money,� Boutros said.

The system has added 1,200 people in the past four years and pays all

employees at least $12 an hour.

MetroHealth has spent $300 million in the past five years on new technology and building new facilities.

The system is not looking to fill hospital beds or provide complex, highly compensated services, but rather to keep people well and reduce chronic diseases in the community, such as diabetes and asthma attacks in young children.

In the past three-and-a-half years, the number of patients who have sought care at MetroHealth has increased by nearly 67,000. It also has continued to see growth in its market share of emergency department visits, inpatient discharges and inpatient and outpatient surgeries, all of which grew between January and September of this year. Boutros credits about 70% of the growth to the influx of patients from HealthSpan, the former Kaiser group dissolving this year. The rest he attributes to the system’s continued growth.

Project funding MetroHealth’s board of trustees in early November approved a measure allowing the system to explore the possibility of issuing bonds to finance the massive construction project. Once the financing options have been further defined and the system receives feedback from the bond market, the board will evaluate the next course of action. Depending on market conditions, trustees could pursue other alternatives. The actual issuance of bonds requires separate board action.

Included in the $855 million is the system’s Critical Care Pavilion, which opened during the summer. MetroHealth put about $90 million of its own funds into that project, the first piece of its main campus transformation. It plans to go to the bond market for the remainder as well as to refinance about $170 million of current debt, Boutros said.

Siegel said he has seen a few other

Fast facts on the new hospital: JJIt

will stand nine stories tall.

JJMost

floors will have about 35-bed units, bringing efficiencies they can’t reach when staffing the current 12- to 20-bed units.

JJOutpatient

services will be pushed to satellite locations, lowering the risk of infections and increasing security.

JJIt

will incorporate on-stage/off-stage design in which patients and visitors won’t see the back-of-house work.

JJPrivate

rooms are designed to be able to flex up to double rooms in case of an emergency.

JJThe

design will reflect the Critical Care Pavilion — bright, colorful and clean, rounded lines.

places that have undertaken large projects on their own credit with varying added financial support from their counties. MetroHealth’s efficiency, he said, is a bargain for taxpayers and a support to the county.

The plan doesn’t change the relationship to the county or its mission to serve everyone, Boutros said.

MetroHealth is still in talks with the county to see how it can participate in the financing, but Boutros said this was the optimal time to move forward. He noted that the credit mar-

“There are few hospitals of any kind who have seen this kind of progress and eight years of being in the black. I’m including all kinds of hospitals, not just public. Public and private, the whole industry can learn from MetroHealth.� — Bruce Siegel, president and CEO of America’s Essential Hospitals

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rooms with private bathrooms.

JJThe

kets have been receptive to similar bonds. “This is also a unique moment in the market,� Boutros said. “We have near-historic interest rate lows that makes this an optimal time to borrow.�

The bond market provides MetroHealth an opportunity to be more cost effective and faster than if it had sought out other sources of funding, Boutros said.

Community growth Most of the hospitals that America’s Essential Hospitals represents are the biggest employer in their community, making them drivers of development and growth, Siegel said.

MetroHealth is no exception.

Ramsey of the Detroit Shoreway Community Development Organization said he’d like to see more MetroHealth employees living and working in the area. He hopes to create programs to promote that, similar to what institutions on the East Side have done with the Greater Circle Living program to incentivize employees of University Circle nonprofit organizations to live in nearby neighborhoods. “It will strengthen the existing

neighborhood by having new people coming in and buying homes and rehabbing them or building new homes,� Ramsey said.

There are several completed, planned and ongoing projects pumping investment on or near West 25th Street, Siegel said.

The completed projects include the Critical Care Pavilion, for one, along with $3 million for West 25th Street resurfacing; $2 million for the Horizon Education Center; $9.8 million for I-71 road construction and another $2.8 million for the I-71 bridge rebuild.

A $1.5 million renovation of the Aragon Ballroom and a $10 million conversion of the former Lion Knitting Mills Co. into loft apartments are both underway.

And going forward, plans include a new $50 million Lincoln West High School and a $3 million rehab of the South Branch Library.

Ramsey said that a lot of assets in the neighborhood, like historic buildings and affordable homes, make it “kind of a hidden secret.� “So MetroHealth’s big announcement here really is, I think, a big shot in the arm to moving these initiatives ahead,� Ramsey said. “We’ve got plans. No shortage of work for the next decade. I think you’re going to see this is a booming community with a lot going on.�

Though there are a lot of questions going forward about the fate of the Affordable Care Act and what’s next for health care policy, the future of health care delivery will be keeping people healthy.

MetroHealth has positioned itself well to move away from the sickness model, Siegel said, noting that others should take note. “There are few hospitals of any kind who have seen this kind of progress and eight years of being in the black,� Siegel said. “I’m including all kinds of hospitals, not just public.

Public and private, the whole industry can learn from MetroHealth.�

CRAIN’S CLEVELAND BUSINESS

The List THIS YEAR BUILDING

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D E C E M B E R 5 - 11, 2 016

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PA G E 3 5

LARGEST OFFICE LEASES

Ranked by square feet

CITY

SQUARE FEET

TENANT

TENANT REPRESENTATIVE

LANDLORD REPRESENTATIVE

1

Victory Center 7012 Euclid Ave.

Cleveland

163,280

Dealer Tire

Cushman & Wakefield | CRESC O

Cushman & Wakefield | CRESC O

2

Key Tower 127 Public Square

Cleveland

115,615

Baker & Hostetler LLP

CBRE

Jacobs Real Estate Services

200 Public Square

Cleveland

107,296

New York Life Insurance

Cushman & Wakefield | CRESC O

Colliers International

15885 W. Sprague Road

Strongsville

88,500

Medical Mutual of Ohio

Allegro Realty Advisors Ltd.

Avison Young

5

Higbee Building 100 Public Square

Cleveland

81,000

Quicken Loans Inc.

NA

NA

6

1111 Superior Ave.

Cleveland

47,529

Hyatt Legal Plans

The Gatto Group

Kowit & Co. Real Estate Group

7

Redicon Building 2824 Woodlawn Ave.

Canton

46,132

Pegasus Holdings Ltd.

NA

CBRE

8

1801 Superior Ave.

Cleveland

44,801

The Council for Ecomonic Opportunities in Greater Cleveland

Cushman & Wakefield | CRESC O

Cushman & Wakefield | CRESC O

9

St. Mary School 307 W. 7th St.

Lorain

43,000

New Beginnings Academy

NA

Allegro Realty Advisors Ltd.

10

1111 Superior Ave.

Cleveland

41,999

IBM - Explorys

CBRE

Kowit & Co. Real Estate Group

11

East End 1144 E. Market St.

Akron

40,400

I Can Schools

CBRE

CBRE

12

8100 Tyler Blvd.

Mentor

40,000

CardinalCommerce Corp.

CBRE

NA

13

AES Building 388 S Main St., Suite 700

Akron

39,420

Quanex Building Products Corp.

Hanna Commercial Real Estate

JLL

14

One Cleveland Center 1375 E. 9th St.

Cleveland

38,806

Baker & Hostetler LLP

CBRE

Newmark Grubb Knight Frank

15

Freedom Square III 4511 Rockside Road

Independence

37,765

Sterling Infosystems Inc.

CBRE

CBRE

16

Southpointe Business Park 6770-6802 W. Snowville Road

Brecksville

34,816

NVR Inc.

JLL

Dalad

17

Harmony Pointe 755 White Pond Drive

Akron

34,200

Stark State College

Tom Jackson Commercial Realty

Cushman & Wakefield | CRESCO

18

Kinross Lakes 3900 Kinross Lakes Parkway

Richfield

32,090

Assured Partners

Colliers International

JLL

19

Rockside Center III 5990 Creek Road

Independence

31,341

ViaSat

NA

Newmark Grubb Knight Frank

20

Crown Centre 1 5005 Rockside Road

Independence

30,893

Electronic Merchant Systems

NA

Cushman & Wakefield | CRESCO

21

St. Mel Parish School 14440 Triskett Road

Cleveland

29,333

DÕAnconia Development Co. LLC

CBRE

Allegro Realty Advisors Ltd.

22

Fifth Third Center 600 Superior Ave. E.

Cleveland

29,125

HWH Architects

CBRE

JLL

23

Ernst & Young Tower 950 Main Ave.

Cleveland

27,694

Kelley & Ferraro LLP

JLL

JLL

24

Oswald Centre 1100 Superior Ave. E.

Cleveland

25,622

Oswald Cos.

JLL

Kowit & Co. Real Estate Group

1111 Superior Ave.

Cleveland

23,780

Plante Moran

Plante Moran

Kowit & Co. Real Estate Group

200 Public Square

Cleveland

23,124

Morgan Stanley Smith Barney Financing LLC

Cushman & Wakefield | CRESC O

NA

10500 Antenucci Blvd.

Garfield Heights

23,100

Cleveland Urology

Cushman & Wakefield | CRESC O

Cushman & Wakefield | CRESC O

28

St. Vincent de Paul Parish School 13442 Lorain Ave.

Cleveland

21,486

Global Ambassadors Language Academy

CBRE

Allegro Realty Advisors Ltd.

29

Brulant Building 3700 Park East Drive, Suite 300

Beachwood

20,379

Real Alloy Recycling Inc.

Cushman & Wakefield | CRESC O

Newmark Grubb Knight Frank

30

Stemco R&D Center Ridgewood Road

Fairlawn

20,200

Stemco

JLL

JLL

31

Tower at Erieview 1301 E. 9th St.. Suite 3000

Cleveland

20,094

TransDigm Group Inc.

Hanna Commercial Real Estate

JLL

32

One Cleveland Center 1375 E. 9th St.

Cleveland

20,080

Lewis, Brisbois, Bisgaard & Smith LLP

Avison Young

Newmark Grubb Knight Frank

33

One Cleveland Center 1375 E. 9th St.

Cleveland

19,078

Schneider, Smeltz, Ranney & LaFond P.L.L.

Allegro Realty Advisors

Newmark Grubb Knight Frank

34

2937 W. 25th St.

Cleveland

18,000

The MetroHealth System

NA

Bill Arroyo

34

Aerospace Technology Park 1000-2000 Apollo Drive

Brook Park

18,000

CEC Combustion Safety LLC

Cushman & Wakefield | CRESC O

Cushman & Wakefield | CRESC O

36

8920 Canyon Falls Blvd.

Twinsburg

17,817

The Shelly Co.

NA

Cushman & Wakefield | CRESCO

37

Brulant Building 3700 Park East Drive, Suite 300

Beachwood

17,578

Candescent Health Inc.

NA

Newmark Grubb Knight Frank

3 4

25 26 27

RESEARCHED BY CHUCK SODER The online version of this list includes 79 leases and is available for purchase at CrainsCleveland.com. Crain's does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues.

Information provided by CoStar Group Inc. www.costar.com and the tenant and landlord representatives. List includes new leases signed between Oct. 1, 2015 and Sept. 30, 2016. The list covers 15 counties: Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne.